RBS plans 20-year callable leveraged CMS steepener notes with 12% cap

By Susanna Moon

Chicago, July 28 - Royal Bank of Scotland plc plans to price capped callable leveraged steepener notes due Aug. 26, 2031 linked to the 30-year and two-year Constant Maturity Swap rates, according to a 424B5 with the Securities and Exchange Commission.

The coupon will be 12% 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 minus 50 basis points, up to a cap of 12%. Interest will be payable quarterly and cannot be less than zero.

The payout at maturity will be par.

The notes will be callable at par on any interest payment date after one year.

RBS Securities Inc. is the agent.

The notes will price on Aug. 23 and settle on Aug. 26.

The Cusip is 78009PBK6.

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