By Susanna Moon
Chicago, April 7 - Royal Bank of Scotland NV priced $7.5 million of callable capped CMS steepener notes due April 12, 2026 linked to the 30-year and two-year Constant Maturity Swap rates, according to a 424B2 filing with the Securities and Exchange Commission.
The coupon will be 10% for the first year. After that, it will be four times the spread of the 30-year CMS rate over the two-year CMS rate, up to a maximum of 10% and subject to a floor of zero. Interest will be payable quarterly.
The payout at maturity will be par.
The notes will be callable at par on any interest payment date beginning April 12, 2012.
RBS Securities Inc. is the agent.
| Issuer: | Royal Bank of Scotland NV
|
| Issue: | Callable capped CMS steepener notes
|
| Amount: | $7.5 million
|
| Maturity: | April 12, 2026
|
| Coupon: | 10% for one year; then four times spread of 30-year CMS rate over two-year CMS rate, capped at 10%, floor of zero; payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Call option: | At par on interest payment dates after one year
|
| Pricing date: | April 7
|
| Settlement date: | April 12
|
| Agent: | RBS Securities Inc.
|
| Fees: | 3.5%
|
| Cusip: | 78009KSD5
|
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