Rabo plans issue of 20% knock-in reverse convertibles linked to Elan

By Angela McDaniels

Seattle, Sept. 15 - Rabo Financial Products BV plans to price an issue of 20% knock-in reverse convertible notes due March 29, 2007 linked to Elan Corp. plc stock, according to the agent for the deal, LaSalle Financial Services Inc.

The six-month convertibles will pay 10% for an annualized return of 20%. Interest will be paid quarterly.

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

Payment at maturity will be determined according to the performance of Elan stock. If the stock trades at or below the knock-in price and closes below the initial price, investors will receive a number of Elan shares equal to $1,000 divided by the initial stock price. The knock-in price will be 70% of the initial price.

Otherwise, investors will receive par in cash.

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