Barclays to price 0% buffered participation reverse convertibles linked to Freeport

By Angela McDaniels

Tacoma, Wash., Dec. 11 - Barclays Bank plc plans to price 0% buffered participation reverse convertible notes due June 30, 2009 linked to the common stock of Freeport-McMoRan Copper & Gold Inc., according to an FWP filing with the Securities and Exchange Commission.

If the final share price is greater than the initial share price, the payout at maturity will be par plus 150% of the share price gain plus a supplemental return that is expected to be 2.5%. The payout will be subject to a cap equal to at least 122% of par. The exact supplemental return and cap will be set at pricing.

If the share price declines by 20% or less, the payout will be par plus the supplemental return.

If the share price declines by more than 20%, investors will receive par plus the supplemental return minus 1% for every 1% that the share price declines beyond 20%. At Barclay's option, it can instead pay a number a Freeport shares that, when multiplied by the final share price, would be equal to this cash amount.

The notes are expected to price on Dec. 23 and settle on Dec. 31

Barclays Capital Inc. is the agent.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.