RBS plans to price 20-year callable capped CMS steepener notes

By Jennifer Chiou

New York, Dec. 10 - Royal Bank of Scotland NV plans to price callable capped CMS steepener notes due Dec. 30, 2030 linked to the 30-year and two-year Constant Maturity Swap rates, according to an FWP with the Securities and Exchange Commission.

The interest rate will be fixed at 11% for the first year. Beginning Dec. 30, 2011, the interest rate will be four times the spread of the 30-year CMS rate over the two-year CMS rate minus 0.5%, subject to a floor of zero and a cap of 11% per year. Interest will be payable quarterly.

The payout at maturity will be par.

Beginning Dec. 30, 2011, the notes will be callable at par on any interest payment date.

The notes (Cusip: 78009KPR7) are expected to price on Dec. 27 and settle on Dec. 30.

RBS Securities Inc. is the agent.

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