Goldman prices extra $13.51 million DAX/TSX notes for Svensk; Eksportfinans plans Caterpillar deal

By Sheri Kasprzak

New York, Oct. 23 - To kick off the week in structured products, Goldman Sachs & Co. priced another $13.513 million in outperformance notes linked to the DAX index and the S&P/TSX 60 index on behalf of AB Svensk Exportkredit.

The most recent pricing brings to $89.688 million the total size of the deal sold so far.

"I don't know much about them [the notes], but just from the size I'd say it's pretty impressive," said one market source when asked about the notes Monday afternoon. "Obviously there was a strong demand from investors."

$76 million priced Oct. 11

Goldman priced the original $76.175 million principal amount of the notes on Oct. 11 for Svensk.

The 0% notes are due Oct. 24, 2008. The Dax is the long index and the S&P/TSX 60 is the short index.

If the return on the long index exceeds that of the short index, payout at maturity will be par plus the percentage by which the long index outperformed the short index. Conversely, if the return on the short index exceeds that of the long index, the payout will be par minus the percentage by which the long index underperformed the short index, with a minimum payout at maturity of zero.

Eksportfinans plans Caterpillar notes

Looking to reverse convertible offerings, Eksportfinans ASA said it plans to price up to $5 million in 8% notes linked to the stock of Caterpillar Inc. through IXIS Securities North America Inc. JVB Financial Group, LLC is the distributor.

The offering is set to close either this Friday or when $5 million in commitments is received for the deal.

The one-year notes are due Oct. 29, 2007 and carry an 80% barrier.

Deal on heels of earnings

The Caterpillar offering, like many reverse convertibles priced lately, comes right after the construction machinery company posted its third-quarter earnings report. The company's profit rose by $1.14 per share, way off analysts' predicted $1.35 level. The company posted revenues of $10.5 billion, up 17%.

The company said in statements released Friday and Monday that the lackluster housing market is responsible for its less-than-stellar earnings.

Other CAT notes

Eksportfinans is not the only bank with reverse convertibles linked to Caterpillar's stock. In fact, on Oct. 12, ABN Amro NV said it intends to price 9.4% knock-in reverse convertibles linked to the company through LaSalle Financial Services, Inc. Those notes carry an 85% knock-in price.

In early October, Barclays Bank plc priced $6 million in 8.5% reverse convertibles linked to Caterpillar. Those notes are due Sept. 28, 2007.

Bear Stearns' reverse convertibles

In other reverse convertibles news, The Bear Stearns Cos. Inc. announced its plans to price 14% one-year reverse convertible notes linked to Apple Computer, Inc.

The notes are due October 2007 and are set to price later this month.

The notes carry an 80% contingent protection level.

More Apple deals

There have been other reverse convertibles linked to the stock of Apple Computer.

Earlier this month, Barclays priced $3 million in 11.5% notes due Oct. 17, 2007. Those notes carry a 70% knock-in price.

Also earlier in October, HSBC USA Inc. announced its plans to price 12.5% notes due Oct. 26, 2007. Those notes have a 75% knock-in price.

Merrill prices notes

Elsewhere, Merrill Lynch & Co., Inc. negotiated the terms of $710,000 in 10% knock-in notes linked to Oil Service HOLDRs.

The notes, due Oct. 23, 2007 carry an 80% knock-in price.

Word of the pricing comes as oil prices continued to head downhill. On Monday, oil prices gave up 52 cents to end the session at $58.81 per barrel.

By comparison, in August, Merrill priced an offering in the same structure, also linked to Oil Service HOLDRs for $2,115,000. Those one-year notes carried a coupon of 11%.

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