Fortis to price 21.15% knock-in reverse convertibles linked to Lehman Brothers

By Angela McDaniels

Tacoma, Wash., May 27 - Fortis Bank, Cayman Islands Branch plans to price knock-in reverse convertible securities due July 4, 2008 linked to Lehman Brothers Holdings, Inc. common stock, according to a term sheet.

The one-month notes will pay 1.7625% for an annualized coupon of 21.15%. Interest will be payable monthly.

If Lehman Brothers stock falls to or below the knock-in price - 70% 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 Lehman Brothers 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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