Published on 12/29/2006 in the Prospect News Structured Products Daily.
New Issue: ABN Amro sells $6.575 million 12% Knock-in Reverse Exchangeables linked to Valero
By Jennifer Chiou
New York, Dec. 29 - ABN Amro Bank NV priced $6.575 million of 12% Knock-in Reverse Exchangeable notes due Dec. 31, 2007 linked to Valero Energy Corp. stock, according to a 424B2 filing with the Securities and Exchange Commission.
Payment at maturity will be determined according to the performance of Valero Energy stock. If the stock trades at or below $41.392, the knock-in price, and closes below $51.74, the initial price, between Dec. 26, 2006 and Dec. 31, 2007, investors will receive a number of Valero Energy shares equal to $1,000 divided by the initial stock price. The knock-in price is 80% of the initial price.
Otherwise, investors will receive par in cash.
Issuer: | ABN Amro Bank NV
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Issue: | Knock-in Reverse Exchangeable notes
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Underlying stock: | Valero Energy Corp.
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Amount: | $6.575 million
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Maturity: | Dec. 31, 2007
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Coupon: | 12%, payable quarterly
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Price: | Par
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Payout at maturity: | If Valero Energy stock closes below the knock-in price during the life of the notes and finishes below the initial price, 19.327 shares of Valero Energy stock; otherwise, par in cash
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Initial price: | $51.74
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Knock-in price: | $41.392, 80% of initial price
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Exchange ratio: | 19.327 shares, at maturity
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Pricing date: | Dec. 26
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Settlement date: | Dec. 29
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Agent: | ABN Amro Inc.
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Fees: | 2.5%
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Distribution: | Off shelf
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