By Marisa Wong
Madison, Wis., Nov. 12 - Royal Bank of Scotland NV priced $15 million of callable capped CMS steepener notes due Nov. 16, 2030 based on the 10-year and two-year Constant Maturity Swap rates, according to a 424B2 filing with the Securities and Exchange Commission.
The coupon is 10% for the first year. After that, the rate will be four times the spread between the 10-year CMS rate and the two-year CMS rate minus 25 basis points, up to a cap of 10%. Interest is payable quarterly and cannot be less than zero.
The notes are callable at par plus accrued interest on any interest payment date beginning Nov. 16, 2011.
The payout at maturity will be par.
RBS Securities Inc. is the underwriter.
| Issuer: | Royal Bank of Scotland NV
|
| Issue: | Callable capped CMS steepener notes
|
| Amount: | $15 million
|
| Maturity: | Nov. 16, 2030
|
| Coupon: | 10% for first year; after that, four times spread of 10-year CMS rate over two-year CMS rate minus 25 bps, with cap of 10% and floor of 0%; payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Call option: | At par on interest payment dates after one year
|
| Pricing date: | Nov. 10
|
| Settlement date: | Nov. 16
|
| Agent: | RBS Securities Inc.
|
| Fees: | 4.407%
|
| Cusip: | 78009KNQ1
|
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