Published on 2/24/2010 in the Prospect News Structured Products Daily.
New Issue: RBS prices $224,000 10.5% reverse exchangeables linked to Bank of America
By Jennifer Chiou
New York, Feb. 24 - Royal Bank of Scotland NV priced $224,000 of 10.5% annualized Knock-in Reverse Exchangeable Securities due Aug. 31, 2010 linked to Bank of America Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
The payout at maturity will be par unless the stock falls below the knock-in price - 70% of the initial share price - during the life of the notes and finishes below the initial share price, in which case investors will receive a number of Bank of America shares equal to $1,000 divided by the initial share 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: | Bank of America Corp. (Symbol: BAC)
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Amount: | $224,000
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Maturity: | Aug. 31, 2010
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Coupon: | 10.5%, payable monthly
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Price: | Par
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Payout at maturity: | If the stock dips below knock-in price during life of notes and finishes below initial share price, 62.735 Bank of America shares; otherwise, par
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Initial share price: | $15.94
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Knock-in price: | $11.16, 70% of initial share price
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Pricing date: | Feb. 23
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Settlement date: | Feb. 26
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Agent: | RBS Securities Inc.
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Fees: | 1.875%
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Cusip: | 78009KAH5
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