Published on 9/11/2006 in the Prospect News Convertibles Daily.
New Issue: ABN Amro sells $2.5 million 9% reverse exchangeables linked to Popular
By Jennifer Chiou
New York, Sept. 11 - ABN Amro Bank NV priced a $2.5 million issue of 9% reverse exchangeable notes due Sept. 13, 2007 linked to Popular Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.
Payment at maturity will be determined according to the performance of Popular stock. If the stock trades at or below $17.13, the knock-in price, and closes below $19.03, the initial price, investors will receive a number of Popular shares equal to $1,000 divided by the initial stock price. Otherwise, investors will receive par in cash.
Issuer: | ABN Amro Bank NV
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Issue: | Reverse exchangeable medium-term senior notes, series A
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Underlying stock: | Popular Inc.
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Amount: | $2.5 million
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Maturity: | Sept. 13, 2007
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Coupon: | 9%, payable monthly
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Price: | Par
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Payout at maturity: | If Popular stock closes below the knock-in price during the life of the notes and finishes below the initial price, 52.549 shares of Popular stock; otherwise par in cash
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Initial stock price: | $19.03
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Knock-in price: | $17.13, 90% of the initial price
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Exchange ratio: | 52.549 shares, at maturity
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Pricing date: | Sept. 6
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Settlement date: | Sept. 13
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Agents: | LaSalle Financial Services Inc., ABN Amro Inc.
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Distribution: | Off shelf
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