Barclays to price $250 million 1% five-year equity-linked notes tied to Microsoft, up 30%

By Abigail W. Adams

Portland, Me., Jan. 31 – Barclays Bank plc plans to price $250 million of five-year cash-settled equity-linked notes tied to Microsoft Corp. after the market close on Thursday with price talk for an issue price of par, a coupon of 1% and an initial conversion premium of 30%, according to a market source.

Barclays is sole bookrunner for the Securities and Exchange Commission-registered offering, which carries a greenshoe of $37.5 million.

The stock reference price will be the volume-weighted average price on Feb. 2.

The notes are non-callable.

There is dividend protection above 75 cents per quarter.

Proceeds will be used to repurchase up to $225 million of Barclays’ 0% cash-settled notes tied to Microsoft due 2025.

Barclays is a London-based multinational investment bank and financial services company.

Microsoft is a Redmond, Wash.-based technology company.

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