Rabo plans issue of 11.8% knock-in reverse convertibles linked to Valero

By Angela McDaniels

Seattle, Sept. 18 - Rabo Financial Products BV plans to price an issue of 11.8% knock-in reverse convertible notes due Oct. 1, 2007 linked to the common stock of Valero Energy Corp., according to the agent for the deal, LaSalle Financial Services Inc.

Interest will be paid quarterly.

The pricing date will be Sept. 26 with settlement on Sept. 29.

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

Otherwise, the payout at maturity will be par in cash.

The notes will be callable quarterly at par.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.