By Laura Lutz
Des Moines, Nov. 1 - ABN Amro Bank NV priced $2.4 million of 14% Knock-In Reverse Exchangeable Securities due May 2, 2008 linked to Cummins Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
Payment at maturity will be determined according to the performance of Cummins stock. If the stock closes below the knock-in price - 65% of the initial price - during the life of the notes and finishes below the initial price, investors will receive a number of Cummins shares equal to par divided by the initial stock price.
Otherwise, investors will receive par in cash.
ABN Amro Inc. is the agent.
| Issuer: | ABN Amro Bank NV
|
| Issue: | Knock-In Reverse Exchangeable Securities
|
| Underlying stock: | Cummins Inc. (NYSE: CMI)
|
| Amount: | $2.4 million
|
| Maturity: | May 2, 2008
|
| Coupon: | 14%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | If Cummins stock closes below the knock-in price during the life of the notes and finishes below the initial price, 8.414 shares of Cummins stock; otherwise, par in cash
|
| Initial price: | $118.85
|
| Knock-in price: | $77.25, 65% of initial price
|
| Pricing date: | Oct. 30
|
| Settlement date: | Nov. 2
|
| Agent: | ABN Amro Inc.
|
| Fees: | 1.75%
|
| Distribution: | Off shelf
|
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