Barclays plans 9% reverse convertible autocallables on Chicago Bridge

By Toni Weeks

San Luis Obispo, Calif., Jan. 30 – Barclays Bank plc plans to price 9% autocallable reverse convertible notes due Feb. 10, 2016 linked to Chicago Bridge & Iron Co. NV shares, according to a 424B2 filing with the Securities and Exchange Commission.

Interest will be payable monthly.

The notes will be automatically called if the closing share price on either of two call valuation dates – Aug. 5, 2015 and Nov. 5, 2015 – is equal to or greater than the initial price.

A knock-in event occurs if the share price closes below the knock-in barrier price, 68% of the initial price, on any day during the life of the notes.

If the notes are not called, the payout at maturity will be par if the final price is equal to or greater than the initial price or if the stock return is negative but a knock-in event has not occurred. If the final price is less than the initial price and a knock-in event has occurred, the payout will be par plus the stock return or, at the issuer’s option, a number of Chicago Bridge shares equal to $1,000 divided by the initial share price.

The notes (Cusip: 06741JZ28) are expected to price Feb. 5 and Feb. 10.

Barclays is the agent.

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