Rabo plans issue of 14% reverse convertibles linked to Toll Brothers

By Angela McDaniels

Seattle, Sept. 11 - Rabo Financial Products BV plans to price an issue of 14% knock-in reverse convertible notes due Dec. 27, 2006 linked to Toll Brothers, Inc. stock, according to the agent for the deal, LaSalle Financial Services Inc.

The three-month convertibles will pay 3.5% for an annualized return of 14%.

The pricing date will be Sept. 22 with settlement on Sept. 27.

Payment at maturity will be determined according to the performance of Toll Brothers stock. If the stock trades at or below the knock-in price and closes below the initial price, investors will receive a number of Toll Brothers shares equal to $1,000 divided by the initial stock price. The knock-in price will be 80% of the initial price.

Otherwise, investors will receive par in cash.

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