Barclays plans CDs due 2018 linked to basket of 10 common stocks

By Angela McDaniels

Tacoma, Wash., Aug. 5 - Barclays Bank Delaware plans to price certificates of deposit due Aug. 29, 2018 linked to a basket of common stocks, according to a term sheet.

The equally weighted basket includes AT&T Inc., Darden Restaurants, Inc., Eli Lilly and Co., Exelon Corp., Intel Corp., Lockheed Martin Corp., Starbucks Corp., Wells Fargo & Co., Walgreen Co. and Verizon Communications Inc.

The CDs will pay a coupon each year equal to the average of the performances of the stocks, subject to a minimum coupon that is expected to be 0.25% to 0.5% and will be set at pricing.

If a stock's return is zero or positive, its performance will be equal to the return cap. If a stock's return is negative, its performance will be the greater of the stock return and negative 15%. The return cap is expected to be 6% to 7% and will be set at pricing.

Investors will receive par at maturity.

Barclays is the agent. Incapital LLC is distributor. The fees are expected to be 3%.

The CDs will price Aug. 26 and settle Aug. 30.

The Cusip number is 06740AB24.

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