By Susanna Moon
Chicago, Dec. 29 - Royal Bank of Scotland NV priced $6.5 million of callable capped CMS steepener notes due Dec. 30, 2030 based on the 30-year and two-year Constant Maturity Swap rates, according to a 424B2 filing with the Securities and Exchange Commission.
The coupon is 11% for the first year. After that, the rate will be four times the spread between the 30-year CMS rate and the two-year CMS rate minus 50 basis points, up to a cap of 11%. Interest is payable quarterly and cannot be less than zero.
The notes are callable at par plus accrued interest on any interest payment date beginning Dec. 30, 2011.
The payout at maturity will be par.
RBS Securities Inc. is the underwriter.
| Issuer: | Royal Bank of Scotland NV
|
| Issue: | Callable capped CMS steepener notes
|
| Amount: | $6.5 million
|
| Maturity: | Dec. 30, 2030
|
| Coupon: | 11% for one year; thereafter, four times spread of 30-year CMS rate over two-year CMS rate minus 50 bps, capped at 11%, floor of 0%; payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Call option: | At par on interest payment dates after one year
|
| Pricing date: | Dec. 27
|
| Settlement date: | Dec. 30
|
| Agent: | RBS Securities Inc.
|
| Fees: | 4.86%
|
| Cusip: | 78009KPR7
|
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