By Angela McDaniels
Tacoma, Wash., Jan. 27 - Barclays Bank plc priced $2 million of callable reverse convertible notes due July 29, 2009 linked to the United States Oil Fund, LP, according to a 424B2 filing with the Securities and Exchange Commission.
The six-month notes pay 10% for an annualized coupon of 20%. Interest is payable monthly.
The notes will be automatically called at par if the fund's shares close at or above the initial share price on April 23, 2009.
If the notes are not called, then the payout at maturity will be par unless the fund's shares fall by more than 45% during the life of the notes and finish below the initial price, in which case investors will receive a number of fund shares equal to $1,000 divided by the initial price or, at Barclays' option, par minus the share price decline.
Barclays Capital Inc. is the agent.
| Issuer: | Barclays Bank plc
|
| Issue: | Callable reverse convertible notes
|
| Underlying fund: | United States Oil Fund, LP
|
| Amount: | $2 million
|
| Maturity: | July 29, 2009
|
| Coupon: | 20%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | If the fund's shares close below the protection price during the life of the notes and finish below the initial price, 30.940594 fund shares or par minus the share price decline; otherwise, par
|
| Call: | Automatically at par if the fund's shares close at or above the initial share price on April 23, 2009
|
| Initial share price: | $32.32
|
| Protection price: | $17.78, 55% of initial price
|
| Pricing date: | Jan. 23
|
| Settlement date: | Jan. 29
|
| Agent: | Barclays Capital Inc.
|
| Fees: | 1.75%
|
© 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.
