New Issue: Barclays prices $1 million 12.5% notes linked to Nortel

New York, Feb. 26 - Barclays Bank plc priced a $1 million offering of reverse convertible notes due Aug. 28, 2007 linked to the common stock of Nortel Networks Corp., according to a 424B2 filing with the Securities and Exchange Commission.

The six-month notes will pay interest monthly at an annualized rate of 12.5%.

The payout at maturity will be par unless Nortel stock falls below the protection price of $25.14 during the life of the notes and finishes below the initial share price of $31.42, in which case the payout will be a number of Nortel shares equal to $1,000 divided by the initial share price or the cash equivalent.

Issuer:	Barclays Bank plc
Issue:	Reverse convertible notes
Underlying stock:	Nortel Networks Corp.
Amount:	$1 million
Maturity:	Aug. 28, 2007
Coupon:	12.5%, payable monthly
Price:	Par
Payout at maturity:	Par if Nortel remains at or above the protection price of $25.14 during the life of the notes and finishes at or above the initial share price; otherwise, 31.826862 Nortel shares or the cash equivalent
Initial share price:	$31.42
Protection price:	$25.14, 80% of initial share price
Pricing date:	Feb. 23
Settlement date:	Feb. 28
Agent:	Barclays Capital Inc.
Agent fees:	2%

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