Barclays plans 15% callable reverse convertibles linked to El Paso

By Angela McDaniels

Tacoma, Wash., Sept. 16 - Barclays Bank plc plans to price callable reverse convertible notes due March 23, 2010 linked to the common stock of El Paso Corp., according to an FWP filing with the Securities and Exchange Commission.

The six-month notes will pay 7.5% for an annualized coupon of 15%. Interest will be payable monthly.

If El Paso stock closes at or above its initial share price on Dec. 18, 2009, the notes will be automatically called at par.

If the notes are not called, the payout at maturity will be par unless El Paso stock closes below the protection price - 70% of the initial price - during the life of the notes and finishes below the initial price. In that case, the payout will be a number of El Paso shares equal to $1,000 divided by the initial share price or, at Barclays' option, par minus the share price decline.

The notes will price Sept. 18 and settle Sept. 23.

Barclays Capital Inc. is the agent.

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