Published on 5/27/2010 in the Prospect News Structured Products Daily.
New Issue: RBS sells $850,000 12.75% reverse exchangeables linked to DryShips
By Susanna Moon
Chicago, May 27 - Royal Bank of Scotland NV priced $850,000 of 12.75% annualized Knock-In Reverse Exchangeable Securities due Sept. 1, 2010 based on the performance of DryShips Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The payout at maturity will be par in cash unless DryShips shares fall below the protection price - 65% of the initial price - during the life of the notes and finish below the initial price, in which case the payout will be a number of shares of DryShips stock equal to $1,000 divided by the initial price.
RBS Securities Inc. is the agent.
Issuer: | Royal Bank of Scotland NV
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Issue: | Knock-In Reverse Exchangeable Securities
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Underlying stock: | DryShips Inc. (Symbol: DRYS)
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Amount: | $850,000
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Maturity: | Sept. 1, 2010
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Coupon: | 12.75%, payable monthly
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Price: | Par
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Payout at maturity: | Par in cash unless the stock falls below the protection price during the life of the notes and finish below the initial price, in which case 215.983 DryShips shares
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Initial price: | $4.63
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Protection price: | $3.01, or 65% of initial price
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Pricing date: | May 26
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Settlement date: | June 1
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Agent: | RBS Securities Inc.
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Fees: | 2.75%
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Cusip: | 78009KHS4
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