New Issue: Barclays sells $1.5 million 8.5% reverse convertibles linked to Gap

By Laura Lutz

Des Moines, Oct. 17 - Barclays Bank plc priced $1.5 million of 8.5% reverse convertible notes due Oct. 17, 2007 linked to The Gap, Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.

Payout at maturity will be par in cash if Gap stock stays at or above the protection price, 75% of the initial price of $19.85, between Oct. 13, 2006 and Oct. 12, 2007, and finishes at or above the initial price. Otherwise, the payout will be in Gap stock, with the number of shares equal to $1,000 divided by the initial share price.

Issuer:	Barclays Bank plc
Issue:	Reverse convertible notes
Underlying stock:	The Gap, Inc.
Amount:	$1.5 million
Maturity:	Oct. 17, 2007
Coupon:	8.5%, payable monthly
Price:	Par
Payout at maturity:	Par in cash if Gap stock stays at or above the protection price of $14.89 and finishes at or above the initial price; otherwise shares of Gap stock equal to $1,000 divided by the initial price
Initial price:	$19.85
Protection price:	$14.89, 75% of $19.85
Pricing date:	Oct. 13
Settlement date:	Oct. 18
Agent:	Barclays Capital
Agent fee:	2.5%

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