Barclays plans 10% reverse convertibles linked to Hewlett-Packard

By Toni Weeks

San Luis Obispo, Calif., Feb. 19 - Barclays Bank plc plans to price 10% single observation callable reverse convertible notes due Feb. 24, 2014 linked to the common stock of Hewlett-Packard Co., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

If the stock closes at or above the initial share price on any of three quarterly call valuation dates beginning May 21, the notes will automatically be called at par plus the coupon.

If the notes are not called and the final share price is at least 75% of the initial share price, the payout at maturity will be par. Otherwise, the payout will be a number of Hewlett-Packard shares equal to $1,000 divided by the initial share price or, at Barclays' option, a cash amount equal to the value of those shares.

The notes (Cusip: 06741JXK0) are expected to price Feb. 20 and settle Feb. 25.

Barclays is the agent.

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