Fortis to price 17.25% knock-in reverse convertibles linked to worst of 'Small Dogs' basket

By Laura Lutz

Des Moines, May 7 - Fortis Bank, Cayman Islands Branch plans to price an issue of 17.25% knock-in reverse convertible securities due May 28, 2009 linked to the worst-performing of a "Small Dogs" basket of common stocks, according to a term sheet.

The basket consists of the common stocks of Citigroup Inc., General Electric Co., General Motors Corp., Merck & Co. Inc. and Pfizer Inc.

Interest will be payable monthly.

If each stock stays at or above its knock-in price - 50% of its initial price - during the life of the notes or if each stock finishes at or above its initial price, the payout at maturity will be par.

Otherwise, the payout at maturity will be a number of shares of the worst-performing stock equal to par divided by the initial price.

The notes will price on May 22 and settle on May 28.

JVB is the distributor.

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