New Issue: ABN Amro sells $530,000 20% reverse exchangeables linked to Meridian Gold

By Laura Lutz

Washington, Nov. 29 - ABN Amro Bank NV priced $530,000 of 20% reverse convertible notes due May 31, 2007 linked to Meridian Gold Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.

Payment at maturity will be determined according to the performance of Meridian Gold stock. If the stock trades at or below $23.624, the knock-in price, and closes below $29.53, the initial price, between Nov. 27, 2006 and May 28, 2007, investors will receive a number of Meridian Gold 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
Issue:	Reverse convertible notes
Underlying stock:	Meridian Gold Inc.
Amount:	$530,000
Maturity:	May 31, 2007
Coupon:	20%, payable monthly
Price:	Par
Payout at maturity:	If Meridian Gold stock closes below the knock-in price during the life of the notes and finishes below the initial price, 33.864 shares of Meridian Gold stock; otherwise par in cash
Initial price:	$29.53
Knock-in price:	$23.624, 80% of initial price
Exchange ratio:	33.864
Pricing date:	Nov. 27
Settlement date:	Nov. 30
Agent:	ABN Amro Inc.
Agent fee:	1.75%
Distribution:	Off shelf

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.