By Jennifer Chiou
New York, Feb. 23 - Royal Bank of Scotland NV priced $8 million of callable capped CMS steepener notes due Feb. 25, 2031 linked to the 30-year and two-year Constant Maturity Swap rates, according to a 424B2 with the Securities and Exchange Commission.
The interest rate will be fixed at 12% for the first year. Beginning Feb. 25, 2012, the interest rate will be four times the spread of the 30-year CMS rate over the two-year CMS rate minus 0.5%, subject to a floor of zero and a cap of 12% per year. Interest will be payable quarterly.
The payout at maturity will be par.
Beginning Feb. 25, 2012, the notes will be callable at par on any interest payment date.
RBS Securities Inc. is the agent.
| Issuer: | Royal Bank of Scotland NV
|
| Issue: | Callable capped CMS steepener notes
|
| Amount: | $8 million
|
| Maturity: | Feb. 25, 2031
|
| Coupon: | 12% for one year; then four times spread of 30-year CMS rate over two-year CMS rate less 50 bps, capped at 12%, floor of zero; payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Call option: | At par on interest payment dates after one year
|
| Pricing date: | Feb. 22
|
| Settlement date: | Feb. 25
|
| Agent: | RBS Securities Inc.
|
| Fees: | 4.872%
|
| Cusip: | 78009KQW5
|
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