ABN Amro prices $94.74 million notes linked to Procter & Gamble

By Sheri Kasprzak

New York, May 31 - ABN Amro Bank NV led structured products news on Thursday with the closing of a $94.74 million offering of zero-coupon Out-Performance Notes linked to Procter & Gamble Co.

"This really is the classic result of tailoring a solution to a client's individual needs," said a source close to the deal. "We have been working for some time with different high net-worth clients on similar trades. In addition, for many blue chip names, there are investors with a large number of shares looking at ways to augment their overall return."

The one-year notes pay 1.5 times any gain on the stock, capped at 26.65%. Investors will share in any losses.

Procter & Gamble's stock has made some gains in May. The stock traded at a low of $61.49 on May 10 and at a high of $63.85 on May 30. On Thursday, the stock gave up 28 cents to end at $63.58 (NYSE: PG).

Bear's Alerian MLP-linked notes

In other structured products news Thursday, Bear Stearns Cos. announced plans to price medium-term series B notes linked to the performance of the Alerian MLP Select index.

Bear Stearns did not immediately return calls for comment on the offering by press time Thursday.

The index measure the composite performance of energy-oriented Master Limited Partnerships and is calculated by Standard & Poor's using a float-adjusted, market capitalization-weighted methodology.

The notes, which have a 20-year term, pay a monthly coupon equal to the gross cash dividend proceeds from the constituents underlying the index for the month, minus a tracking fee.

If the gross cash dividend proceeds in any month are less than the tracking fee, no coupon will be paid and the difference between the tracking fee and the gross cash dividend proceeds will be added to the tracking fee for the following month.

Payout at maturity will be par times the different between the final and initial volume-weighted average price level, less the accrued tracking fee.

The notes, which are set to price in June, may be redeemed on the last business day of each week during the life of the securities, less a 0.125% redemption fee.

The index measures the composite performance of energy master limited partnerships and is calculated by Standard & Poor's using a float-adjusted market capitalization-weighted methodology.

Alerian MLP Select

The Alerian MLP Select index provides an enhanced liquid subset of the Alerian MLP index. The select index conforms with the New York Stock Exchange's criteria for underlying constituent inclusion in exchange-traded index products, according to an NYSE statement.

In May, the index level ranged between 850.37 on May 29 and 879.28 on May 14. On May 1, the level was at 857.52 and on May 30, it was at 857.08.

Despite the drop in May, the index level was up compared to April when the index ranged between 864.24.

Deutsche Bank's Tel-Aviv 25 notes

Moving to another index-linked offering, Deutsche Bank AG, London Branch said it intends to price zero-coupon performance securities with partial protection linked to the Tel-Aviv 25 index.

The three-year notes pay par of $10 plus the return on the index multiplied by the participation rate, expected to be between 100% and 110%, assuming the final index level is greater than the initial level. The maximum return on the securities is 25%.

If the final index level is equal to or less than the initial level but does not close below the protection percentage, investors will receive par. If the level does fall below the protection percentage during the life of the securities, investors will share in any losses.

The offering is set to price June 25 and UBS Financial Services Inc. and Deutsche Bank Securities Inc. are the underwriters.

Tel-Aviv 25 index

The index is composed of the 25 largest stocks by market capitalization on the Tel-Aviv Stock Exchange.

On Thursday, the index gained 0.75% to close at 1,126.37.

In May, the index traded at a high of 1,130.46 and at a low of 1,056.35.

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