New Issue: RBS prices $400,000 17% reverse exchangeables linked to Cliffs Natural Resources

By Angela McDaniels

Tacoma, Wash., May 18 - Royal Bank of Scotland NV priced $400,000 of reverse exchangeable securities due Aug. 20, 2010 linked to the common stock of Cliffs Natural Resources Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The three-month notes pay 4.25% for an annualized coupon of 17%. 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 Cliffs 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:	Cliffs Natural Resources Inc. (Symbol: CLF)
Amount:	$400,000
Maturity:	Aug. 20, 2010
Coupon:	17%, payable monthly
Price:	Par
Payout at maturity:	If stock dips below knock-in price during life of notes and finishes below initial share price, 18.896 Cliffs shares; otherwise, par
Initial share price:	$52.92
Knock-in price:	$37.04, 70% of initial share price
Pricing date:	May 17
Settlement date:	May 20
Agent:	RBS Securities Inc.
Fees:	2.75%
Cusip:	78009KHL9

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.