By Susanna Moon
Chicago, Aug. 16 - Royal Bank of Scotland plc priced $2 million of capped callable leveraged steepener notes due Aug. 18, 2031 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 11.125% 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 25 basis points, up to a maximum of 11.125%. 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.
| Issuer: | Royal Bank of Scotland plc
|
| Issue: | Capped callable leveraged steepener notes
|
| Amount: | $2 million
|
| Maturity: | Aug. 18, 2031
|
| Coupon: | 11.125% for one year; then four times spread of 30-year CMS rate over two-year CMS rate less 25 bps, capped at 11.125%, floor of zero; payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Call option: | At par on interest payment dates beginning Aug. 18, 2012
|
| Pricing date: | Aug. 15
|
| Settlement date: | Aug. 18
|
| Agent: | RBS Securities Inc.
|
| Fees: | 4.75%
|
| Cusip: | 78009PBE0
|
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