Fortis to price 20.4% knock-in reverse convertibles linked to GM

By Angela McDaniels

Tacoma, Wash., May 27 - Fortis Bank, Cayman Islands Branch plans to price knock-in reverse convertible securities due Dec. 4, 2008 linked to General Motors, Corp. common stock, according to a term sheet.

The six-month notes will pay 10.2% for an annualized coupon of 20.4%. Interest will be payable monthly.

If GM stock falls to or below the knock-in price - 60% of the initial share price - during the life of the notes and finishes below the initial share price, the payout at maturity will be a number of GM shares equal to $1,000 divided by the initial share price.

Otherwise, the payout will be par.

The notes will price on May 30 and settle on June 4.

JVB is the distributor.

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