By Angela McDaniels
Tacoma, Wash., Dec. 27 - Royal Bank of Scotland NV priced $2.2 million of annual reset coupon securities due Dec. 29, 2015 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable annually. If the index return on the relevant observation date is zero or positive, the coupon will be 7% for that year. Otherwise, the coupon will be 2%. For each interest period, the initial index level used to calculate the return will be the index's level on the previous observation date.
The observation dates fall on Dec. 23 of 2010 through 2015.
The payout at maturity will be par unless the final index level is less than 80% of the initial index level, in which case investors will lose 1% for every 1% decline below the buffer.
RBS Securities Inc. is the agent.
| Issuer: | Royal Bank of Scotland NV
|
| Issue: | Annual reset coupon securities
|
| Underlying index: | S&P 500
|
| Amount: | $2,198,000
|
| Maturity: | Dec. 29, 2015
|
| Coupon: | If index return is zero or positive, 7%; otherwise, 2%; payable annually
|
| Price: | Par
|
| Payout at maturity: | If final index level is at least 80% of initial level, par; otherwise, 1% loss for each 1% decline below buffer
|
| Initial index level: | 1,256.77
|
| Pricing date: | Dec. 23
|
| Settlement date: | Dec. 29
|
| Agent: | RBS Securities Inc.
|
| Fees: | 4.2%
|
| Cusip: | 78009KPK2
|
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