Published on 3/7/2012 in the Prospect News Structured Products Daily.
New Issue: RBS prices $622,000 variable-income notes linked to 10 stocks
By Toni Weeks
San Diego, March 7 - Royal Bank of Scotland plc priced $622,000 of variable-income notes due March 9, 2017 linked to a basket of common stocks, according a 424B5 filing with the Securities and Exchange Commission.
The basket includes Altria Group, Inc., American Electric Power Co., Inc., AT&T Inc., Avon Products, Inc., Bristol-Myers Squibb Co., Entergy Corp., Lockheed Martin Corp., Pfizer Inc., Southern Co. and Verizon Communications Inc.
The notes will pay a coupon each year equal to the average of the basket stocks' performances, subject to a minimum coupon of 1%.
If a stock's return is greater than or equal to zero, its performance will be equal to the 6% auto-cap rate. 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.
RBS Securities Inc. is the agent.
| Issuer: | Royal Bank of Scotland plc
|
| Issue: | Variable-income notes
|
| Underlying stocks: | Altria Group, Inc. (Symbol: MO), American Electric Power Co., Inc. (Symbol: AEP), AT&T Inc. (Symbol: T), Avon Products, Inc. (Symbol: AVP), Bristol-Myers Squibb Co. (Symbol: BMY), Entergy Corp. (Symbol: ETR), Lockheed Martin Corp. (Symbol: LMT), Pfizer Inc. (Symbol: PFE), Southern Co. (Symbol: SO) and Verizon Communications Inc. (Symbol: VZ)
|
| Amount: | $622,000
|
| Maturity: | March 9, 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 6%, 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: | $30.08 for Altria Group, Inc., $38.19 for American Electric Power Co., Inc., $30.71 for AT&T Inc., $18.18 for Avon Products, Inc., $32.33 for Bristol-Myers Squibb Co., $66.76 for Entergy Corp., $87.78 Lockheed Martin Corp., $21.25 for Pfizer Inc., $44.65 for Southern Co. and $38.69 for Verizon Communications Inc.
|
| Pricing date: | March 6
|
| Settlement date: | March 9
|
| Agent: | RBS Securities Inc.
|
| Fees: | 4.25%
|
| Cusip: | 78009PCN9
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