New Issue: RBS prices $1.32 million annual reset coupon securities linked to S&P 500

By E. Janene Geiss

Philadelphia, Oct. 27 - Royal Bank of Scotland NV priced $1.32 million annual reset coupon securities due Oct. 30, 2015 linked to the S&P 500 index, according to an FWP filing with the Securities and Exchange Commission.

Interest will be payable in October of each year. If the index return is zero or positive, the coupon will be 8%. Otherwise, the coupon will be 1%. For each interest period, the initial index level used to calculate the return will be the index's level one year prior to the coupon payment date.

The payout at maturity will be par unless the final index level is less than 80% of the initial index level, in which case investors will lose 1% for every 1% decline beyond the trigger level.

RBS Securities Inc. is the agent.

Issuer:	Royal Bank of Scotland NV
Issue:	Annual reset coupon securities
Underlying index:	S&P 500
Amount:	$1,321,000
Maturity:	Oct. 30, 2015
Coupon:	If index return is zero or positive, 8%; otherwise, 1%; payable annually
Price:	Par
Payout at maturity:	Par if index finishes at or above 80% of initial index level; otherwise, 1% loss for every 1% decline below trigger level
Initial index level:	1,185.64
Pricing date:	Oct. 26
Settlement date:	Oct. 29
Agent:	RBS Securities Inc.
Fees:	4%
Cusip:	78009KMT6

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