Barclays plans to price five-year CDs linked to basket of stocks

By Angela McDaniels

Tacoma, Wash., Aug. 7 - Barclays Bank Delaware plans to price certificates of deposit due Aug. 28, 2014 linked to a basket of stocks, according to a term sheet.

The equally weighted basket includes Apple Inc., Bank of America Corp., Chesapeake Energy Corp., Deere & Co., Ford Motor Co., General Electric Co., Nvidia Corp., Target Corp., Wells Fargo & Co. and Whole Foods Market Inc.

The CDs will pay interest on Aug. 24 of each year. The coupon will equal the average of the returns on the basket stocks. Each stock's return will be capped at 11% to 16%, with the exact cap to be set at pricing, and the coupon for each year will not be less than zero.

The payout at maturity will be par.

The CDs are expected to price Aug. 24 and settle Aug. 31.

Barclays Capital Inc. is the agent. Advisors Asset Management, Inc. is the distributor.

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