By Angela McDaniels
Tacoma, Wash., Sept. 14 - Royal Bank of Scotland plc priced $4 million of 0% RBS Oil Trendpilot exchange-traded notes due Sept. 13, 2041 linked to the RBS Oil Trendpilot index, according to a 424B5 filing with the Securities and Exchange Commission.
The issuer plans to issue up to $100 million of the notes. The additional notes will be sold at varying prices from time to time.
The notes have a face amount of $25 each.
The notes are callable and putable. Holders who wish to exercise the put option must put back at least 20,000 notes.
The payout at maturity or upon redemption will be the daily redemption value on the valuation date.
The daily redemption value on the inception date was $25. On each subsequent day, it is equal to the daily redemption value on the preceding day multiplied by the index factor - the index closing level on that day divided by the index closing level on the previous day - and minus the investor fee, which is 1.1% per year when the index is tracking the RBS 12-Month Oil Total Return index and 0.5% per year when it is tracking the cash rate.
The index provides exposure to either the RBS 12-Month Oil Total Return index or the yield on a hypothetical notional investment in three-month Treasury bills as of the most recent weekly auction. As of Sept. 13, the index tracks the cash rate.
If the closing level of the RBS 12-Month Oil Total Return index is at or above its historical 100-index-business-day simple moving average for five consecutive index business days, then the RBS Oil Trendpilot index will track the return on the RBS 12-Month Oil Total Return index.
If the closing level of the RBS 12-Month Oil Total Return index is below its historical 100-index-business-day simple moving average for five consecutive index business days, then the RBS Oil Trendpilot index will track the cash rate.
The notes have been approved for listing on NYSE Arca, Inc. under the symbol "TWTI."
RBS Securities Inc. is the agent. Pacer Financial, Inc. is marketing the notes. Both will receive a portion of the investor fee.
| Issuer: | Royal Bank of Scotland plc
|
| Issue: | RBS Oil Trendpilot exchange-traded notes
|
| Underlying index: | RBS Oil Trendpilot index
|
| Amount: | $4 million
|
| Maturity: | Sept. 13, 2041
|
| Coupon: | 0%
|
| Face value: | $25
|
| Payout at maturity: | Cash amount equal to daily redemption value, which on any day equals the daily redemption value on the preceding day multiplied by the index factor and minus the investor fee
|
| Call option: | At any time
|
| Put option: | At any time, subject to a minimum of 20,000 notes
|
| Inception date: | Sept. 13
|
| Settlement date: | Sept. 16
|
| Agent: | RBS Securities Inc.
|
| Listing: | NYSE Arca: TWTI
|
| Cusip: | 78009P127
|
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