By Angela McDaniels
Tacoma, Wash., Sept. 22 - Barclays Bank plc priced $1.5 million of callable reverse convertible notes due March 23, 2010 linked to the common stock of El Paso Corp., according to a 424B3 filing with the Securities and Exchange Commission.
The six-month notes pay 7.5% for an annualized coupon of 15%. Interest is 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.
Barclays Capital Inc. is the agent.
Issuer: | Barclays Bank plc
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Issue: | Callable reverse convertible notes
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Underlying stock: | El Paso Corp. (Symbol: EP)
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Amount: | $1.5 million
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Maturity: | March 23, 2010
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Coupon: | 15%, payable monthly
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Price: | Par
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Payout at maturity: | If El Paso stock falls below protection price during life of notes and finishes below initial price, 97.847358 El Paso shares or par minus the share price decline; otherwise, par
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Call: | Automatically at par if El Paso stock closes at or above initial share price on Dec. 18, 2009
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Initial share price: | $10.22
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Protection price: | $7.15, 70% of initial price
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Pricing date: | Sept. 18
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Settlement date: | Sept. 23
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Agent: | Barclays Capital Inc.
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Fees: | 1.75%
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