Published on 1/27/2012 in the Prospect News Structured Products Daily.
New Issue: RBS sells $528,000 five-year variable-income notes linked to 10 stocks
By Marisa Wong
Madison, Wis., Jan. 27 - Royal Bank of Scotland plc priced $528,000 of variable-income notes due Jan. 31, 2017 linked to a basket of common stocks, according a 424B5 filing with the Securities and Exchange Commission.
The basket includes equal weights of Amazon.com, Inc., Amgen Inc., Apple Inc., Avon Products, Inc., JPMorgan Chase & Co., McDonald's Corp., Nike, Inc., Sprint Nextel Corp., Southern Co. and Walgreen Co.
The notes will pay a coupon each year equal to the greater of (a) the average of the stock performances on the applicable coupon observation date and (b) 1%.
If a stock's return is greater than or equal to zero, its performance will be equal to the auto cap, which is 9.25%. Otherwise, its performance will be the greater of the stock return and negative 30%.
The payout at maturity will be par plus the final coupon payment, if any.
RBS Securities Inc. is the agent.
| Issuer: | Royal Bank of Scotland plc
|
| Issue: | Variable-income notes
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| Underlying stocks: | Amazon.com, Inc. (Symbol: AMZN), Amgen Inc. (Symbol: AMGN), Apple Inc. (Symbol: AAPL), Avon Products, Inc. (Symbol: AVP), JPMorgan Chase & Co. (Symbol: JPM), McDonald's Corp. (Symbol: MCD), Nike, Inc. (Symbol: NKE), Sprint Nextel Corp. (Symbol: S), Southern Co. (Symbol: SO) and Walgreen Co. (Symbol: WAG)
|
| Amount: | $528,000
|
| Maturity: | Jan. 31, 2017
|
| Coupon: | Greater of (a) the average of the stock performances on the applicable coupon observation date and (b) 1%; if stock's return at least zero, performance will equal 9.25%, otherwise performance will be greater of stock return and negative 30%; payable annually
|
| Price: | Par
|
| Payout at maturity: | Par plus final coupon payment
|
| Initial prices: | $193.38 for Amazon; $68.08 for Amgen; $444.47 for Apple; $18.46 for Avon; $37.49 for JPMorgan; $99.18 McDonald's; $102.30 for Nike; $2.17 for Sprint; $45.32 for Southern; $34.32 for Walgreen
|
| Pricing date: | Jan. 26
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| Settlement date: | Jan. 31
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| Agent: | RBS Securities Inc.
|
| Fees: | 4.25%
|
| Cusip: | 78009PCL3
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