Published on 12/13/2006 in the Prospect News Structured Products Daily.
New Issue: Societe Generale sells $1 million of 4% Performance ReConvs linked to Arch Coal
By Laura Lutz
Washington, Dec. 13 - Societe Generale, New York Branch priced an issue of $1 million of 4% Performance ReConvs notes due Nov. 30, 2007 linked to Arch Coal, Inc., according to a term sheet.
If the price of Arch stock finishes above the initial price, the payout will be $1,000 plus twice the percentage gain on the underlying stock, capped at a return of 25.12%.
If Arch stock falls to or below the contingent protection level of $28.90, 80% of the initial level, during the life of the notes and the stock finishes below the initial share price, the payout will be $1,000 divided by the initial price, in stock (27 shares plus fractions in cash) or the equivalent in cash.
Otherwise, the payout is par.
Countrywide Securities Corp. acted as distributor.
| Issuer: | Societe Generale, New York Branch
|
| Issue: | Performance ReConvs
|
| Underlying security: | Arch Coal, Inc.
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| Amount: | $1 million
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| Maturity: | Nov. 30, 2007
|
| Coupon: | 4%
|
| Payment at maturity: | If Arch stock finishes above the initial price, payout will be $1,000 plus twice the percentage gain on the underlying stock, capped at a return of 25.12%; if Arch stock falls below the contingent protection level of $28.90 during the life of the notes and finishes below the initial price, payout will be $1,000 divided by the $36.12 initial price, in stock (27 shares plus fractions in cash) or equivalent in cash; otherwise par
|
| Initial price: | $36.12
|
| Contingent protection level: | $28.90, 80% of the initial level
|
| Performance cap: | 25.12%
|
| Pricing date: | Nov. 29
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| Settlement date: | Nov. 30
|
| Agent: | Societe Generale
|
| Distributor: | Countrywide Securities Corp.
|
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