New Issue: ABN Amro sells $5 million 13.25% reverse exchangeables linked to First Bancorp

By Jennifer Chiou

New York, Nov. 7 - ABN Amro Bank NV priced a $5 million issue of 13.25% knock-in reverse exchangeable notes due May 7, 2007 linked to First Bancorp stock, according to a 424B2 filing with the Securities and Exchange Commission.

Payment at maturity will be determined according to the performance of First Bancorp stock. If the stock trades at or below $7.74, the knock-in price, and closes below $9.67, the initial price, investors will receive a number of First Bancorp shares equal to $1,000 divided by the initial stock price. Otherwise, investors will receive par in cash.

Issuer:	ABN Amro Bank NV
Issue:	Reverse exchangeable medium-term senior notes, series A
Underlying stock:	First Bancorp
Amount:	$5 million
Maturity:	May 7, 2007
Coupon:	13.25%, payable quarterly
Price:	Par
Payout at maturity:	If First Bancorp stock closes below the knock-in price during the life of the notes and finishes below the initial price, 103.413 shares of First Bancorp stock; otherwise par in cash
Initial stock price:	$9.67
Knock-in price:	$7.74, 80% of the initial price
Exchange ratio:	103.413 shares, at maturity
Pricing date:	Nov. 1
Settlement date:	Nov. 6
Agents:	LaSalle Financial Services Inc., ABN Amro Inc.
Fees:	2.25%
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.