By Laura Lutz
Des Moines, Nov. 5 - SG Structured Products, Inc. priced $2 million of 18% Tempo ReConvs notes due April 30, 2008 linked to CIT Group Inc. stock, according to a term sheet.
Interest is payable quarterly.
The notes will be automatically redeemed in whole if the closing price of CIT Group stock exceeds the initial share price of $34.26 on Jan. 31, 2008. The redemption price will be par plus accrued interest.
If CIT Group stock falls below the contingent protection level of $25.70, 75% of the initial level, during the life of the notes and the stock finishes below the initial share price, the payout at maturity will be a number of CIT Group shares equal to par divided by the initial share price or the equivalent in cash.
Otherwise, the payout is par.
Societe Generale Americas Securities, LLC is lead agent with Countrywide Securities Corp. as co-agent.
| Issuer: | SG Structured Products, Inc.
|
| Issue: | Tempo ReConvs
|
| Underlying stock: | CIT Group Inc. (Symbol: CIT)
|
| Amount: | $2 million
|
| Maturity: | April 30, 2008
|
| Coupon: | 18%, payable quarterly
|
| Price: | Par
|
| Payout at maturity: | If CIT Group stock falls below the contingent protection level of $25.70 during the life of the notes and finishes below the initial price, payout will be a number of CIT Group shares equal to par divided by the $34.26 initial price or equivalent in cash; otherwise par
|
| Initial price: | $34.26
|
| Contingent protection level: | $25.70, 75% of the initial level
|
| Call: | Automatically redeemed for par plus accrued interest if the closing price of CIT Group stock exceeds $34.26 on Jan. 31, 2008
|
| Pricing date: | Oct. 26
|
| Settlement date: | Oct. 31
|
| Agents: | Societe Generale America Securities, LLC (lead); Countrywide Securities Corp.
|
| Fees: | 3.5% (maximum)
|
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