Barclays to price covered call notes linked to iShares MSCI EAFE index fund

By Angela McDaniels

Tacoma, Wash., Nov. 26 - Barclays Bank plc plans to price 0% covered call notes due Jan. 7, 2010 linked to the iShares MSCI EAFE index fund, according to an FWP filing with the Securities and Exchange Commission.

The price of each note will be equal to the closing price of one fund share on the pricing date, which is expected to be Dec. 2. Settlement is slated for Dec. 5.

If the final share price is greater than the initial price, the payout at maturity will be par plus a call premium that is expected to be 16.8% to 20.8% and will be set at pricing.

If the final share price is less than the initial price, the payout will be par plus the call premium minus the share price decline. Investors will therefore experience a loss if the share price declines by more than the call premium.

Barclays Capital Inc. is the agent.

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