Rabo Financial Products plans issue of 15.1% knock-in reverse convertibles linked to Nasdaq Stock Market

By Angela McDaniels

Seattle, Aug. 28 - Rabo Financial Products BV plans to price an issue of 15.1% knock-in reverse convertible notes due March 8, 2007 linked to The Nasdaq Stock Market, Inc. stock, according to the agent for the deal, LaSalle Financial Services Inc.

The six-month convertibles will pay 7.55% for an annualized return of 15.1%. Interest will be paid quarterly.

The pricing date will be Sept. 8 with settlement on Sept. 13.

Payment at maturity will be determined according to the performance of Nasdaq stock. If the stock trades at or below the knock-in price and closes below the initial price, investors will receive a number of Nasdaq shares equal to $1,000 divided by the initial stock price. The knock-in price will be 75% of the initial price.

Otherwise, investors will receive par in cash.

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