By Marisa Wong
Madison, Wis., Oct. 21 - Royal Bank of Scotland plc plans to issue from time to time up to $100 million of 0% RBS Global Big Pharma exchange-traded notes due Oct. 25, 2041 linked to the NYSE Arca Equal Weighted Pharmaceutical Total Return index, according to a 424B5 filing with the Securities and Exchange Commission. The issuer priced an initial $4 million of the exchange-traded notes on Oct. 21.
The index is comprised of equity securities of a cross-section of companies involved in various phases of development, production and marketing of pharmaceuticals.
The daily redemption value of each note is $25 at inception. For each day after that, the daily redemption value is equal to (a) the daily redemption value on the preceding day times (b) the index factor on that day times (c) the daily fee factor.
The index factor on any valuation date is equal to the index closing level on that day divided by the index closing level on the preceding day.
The daily fee factor is equal to (a) one minus (b) (i) an investor fee of 0.6% per year times (ii) the number of days from the preceding valuation date to the current valuation day divided by (iii) 365.
The payout at maturity will be the daily redemption value of the ETNs on Oct. 22, 2041.
The notes are putable at any time, subject to a minimum of 20,000 ETNs, and are callable in whole at any time. The redemption amount will equal the daily redemption value on the relevant valuation date, which will be three business days before the repurchase date.
The notes will be automatically accelerated if the daily redemption value ever equals zero.
The ETNs will be listed on NYSE Arca under the ticker symbol "DRGS."
RBS Securities Inc. is the underwriter.
| Issuer: | Royal Bank of Scotland plc
|
| Issue: | RBS Global Big Pharma ETNs
|
| Amount: | $4 million
|
| Maturity: | Oct. 25, 2041
|
| Coupon: | 0%
|
| Price: | Par of $25
|
| Payout at maturity: | Daily redemption value on Oct. 22, 2041; daily redemption value is (a) daily redemption value on preceding day times (b) index factor times (c) fee factor based on investor fee of 0.6% per year; index factor on any day is index closing level on that day divided by index closing level on preceding day
|
| Put option: | At any time, minimum of 20,000 ETNs; redemption amount determined in same manner as payout at maturity
|
| Call option: | In whole at any time; redemption amount determined in same manner as payout at maturity
|
| Pricing date: | Oct. 21
|
| Settlement date: | Oct. 26
|
| Underwriter: | RBS Securities Inc.
|
| Fees: | None
|
| Cusip: | 78009P135
|
| Listing: | NYSE Arca: DRGS
|
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