New Issue: RBS prices $1.08 million 20.5% reverse exchangeables linked to Eastman Kodak

By Angela McDaniels

Tacoma, Wash., May 6 - Royal Bank of Scotland NV priced $1.08 million of reverse exchangeable securities due Aug. 10, 2010 linked to the common stock of Eastman Kodak Co., according to a 424B2 filing with the Securities and Exchange Commission.

The three-month notes pay 5.125% for an annualized coupon of 20.5%. Interest is payable monthly.

The payout at maturity will be par unless the stock falls below the knock-in price - 70% of the initial share price - during the life of the notes and finishes below the initial share price, in which case investors will receive a number of Eastman Kodak shares equal to $1,000 divided by the initial share price.

RBS Securities Inc. is the agent.

Issuer:	Royal Bank of Scotland NV
Issue:	Reverse exchangeable securities
Underlying stock:	Eastman Kodak Co. (Symbol: EK)
Amount:	$1,075,000
Maturity:	Aug. 10, 2010
Coupon:	20.5%, payable monthly
Price:	Par
Payout at maturity:	If stock dips below knock-in price during life of notes and finishes below initial share price, 161.551 Eastman Kodak shares; otherwise, par
Initial share price:	$6.19
Knock-in price:	$4.33, 70% of initial share price
Pricing date:	May 5
Settlement date:	May 10
Agent:	RBS Securities Inc.
Fees:	2.75%
Cusip:	78009KGM8

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