By Toni Weeks
San Diego, April 29 - Royal Bank of Scotland NV has issued $33.1 million of its 0% RBS US Large Cap Trendpilot exchange-traded notes as of April 25, according to a 424B5 filing with the Securities and Exchange Commission.
The notes mature Dec. 7, 2040 and are linked to the RBS US Large Cap Trendpilot index.
The issuer registered to sell up to $100 million of the notes on Dec. 6. It priced $4 million at the time and said it would sell the remainder from time to time at varying prices.
The notes have a face amount of $25 each.
The notes are callable and putable. Holders who wish to exercise the put option must put back at least 40,000 notes.
The payout at maturity or upon redemption will be the daily redemption value on the valuation date.
The daily redemption value on the pricing date was $25. On each subsequent day, it is equal to the daily redemption value on the preceding day multiplied by the index factor - the index closing level on that day divided by the index closing level on the previous day - and minus the investor fee, which is 1% per year when the index is tracking the S&P 500 Total Return index and 0.5% per year when it is tracking the cash rate.
The notes are listed on NYSE Arca under the symbol "TRND."
The index provides exposure to either the S&P 500 Total Return or the cash rate, which is defined as the yield on a hypothetical notional investment in three-month U.S. Treasury bills.
If the level of the S&P 500 Total Return is below the simple moving average for five consecutive business days, the index will then track the cash rate instead of the S&P 500 Total Return and will have no exposure to the equity benchmark until the next positive trend.
As of the Dec. 6 pricing date, the index tracks the S&P 500 Total Return.
RBS Securities Inc. is the agent. Pacer Financial, Inc. is marketing the notes. Both will receive a portion of the investor fee.
| Issuer: | Royal Bank of Scotland NV
|
| Issue: | RBS US Large Cap Trendpilot exchange-traded notes
|
| Underlying index: | RBS US Large Cap Trendpilot index
|
| Amount: | $33.1 million, increased from $4 million
|
| Maturity: | Dec. 7, 2040
|
| Coupon: | 0%
|
| Price: | Par of $25
|
| Payout at maturity: | Cash amount equal to daily redemption value, which on any day equals the daily redemption value on the preceding day multiplied by the index factor and minus the investor fee
|
| Call option: | At any time
|
| Put option: | At any time, subject to a minimum of 40,000 notes
|
| Pricing date: | Dec. 6
|
| Settlement date: | Dec. 9 (for initial $4 million)
|
| Agent: | RBS Securities Inc.
|
| Listing: | NYSE Arca: TRND
|
| Cusip: | 78009L308
|
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