RBS changes observation date for annual reset coupon notes on S&P 500

By Angela McDaniels

Tacoma, Wash., Sept. 23 - Royal Bank of Scotland NV changed the third observation date for its upcoming annual reset coupon securities linked to the S&P 500 index to Oct. 28, 2013 from Oct. 27, 2013, according to an FWP filing with the Securities and Exchange Commission.

The remaining terms of the notes, including the Oct. 30, 2015 maturity date, are unchanged.

Interest will be payable annually. If the index return on the relevant observation date is zero or positive, the coupon will be 8% for that year. 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 approximately one year prior to the coupon payment date.

The observation dates will be Oct. 26, 2011, Oct. 26, 2012, Oct. 28, 2013, Oct. 27, 2014 and Oct. 27, 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.

The notes (Cusip 78009KMT6) are expected to price Oct. 26 and settle Oct. 29.

RBS Securities Inc. is the agent.

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