Rabo plans issue of 15% reverse convertibles linked to Peabody

By Angela McDaniels

Seattle, Sept. 5 - Rabo Financial Products BV plans to price an issue of 15% knock-in reverse convertible notes due Sept. 20, 2007 linked to Peabody Energy Corp. stock, according to the agent for the deal, LaSalle Financial Services Inc.

Interest will be paid quarterly.

The pricing date will be Sept. 15 with settlement on Sept. 20.

Payment at maturity will be determined according to the performance of Peabody stock. If the stock trades at or below the knock-in price and closes below the initial price, investors will receive a number of Peabody shares equal to $1,000 divided by the initial stock price. The knock-in price will be 70% of the initial price. Otherwise, investors will receive par in cash.

The notes are callable quarterly at par.

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