Barclays plans callable Stars with 5% buffer linked to General Electric

By Susanna Moon

Chicago, May 24 - Barclays Bank plc plans to price 0% Strategic Accelerated Redemption Securities due July 2013 linked to General Electric Co. shares, according to a 424B2 filing with the Securities and Exchange Commission.

If General Electric stock closes at or above its initial level on any of three observation dates, the notes will be called at par of $10 plus an annualized call premium of 12% to 16%. The observation dates are in December, March, 2013 and June 2013, and the exact call premium will be set at pricing.

If the notes are not called, the payout at maturity will be par if the index falls by up to 5%, and investors will be exposed to losses beyond 5%.

Bank of America Merrill Lynch is the agent.

The notes will price and settle in June.

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