RBS plans to price annual reset coupon securities linked to S&P 500

By Angela McDaniels

Tacoma, Wash., June 8 - Royal Bank of Scotland NV plans to price annual reset coupon securities due June 30, 2015 linked to the S&P 500 index, according to an FWP filing with the Securities and Exchange Commission.

Interest will be payable in June of each year. If the index return is zero or positive, the coupon will be 9%. Otherwise, the coupon will be 1%. For each interest period, the initial index level used to calculate the return will be the index's level one year prior to the coupon payment date.

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.

The notes will price June 25 and settle June 30.

RBS Securities Inc. is the agent.

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