Barclays to price Buffered Super Track Notes tied to Pure Beta Plus II

By Angela McDaniels

Tacoma, Wash., Oct. 7 - Barclays Bank plc plans to price 0% Buffered Super Track Notes due Oct. 31, 2011 linked to the Barclays Capital Pure Beta Plus II Excess Return index, according to an FWP filing with the Securities and Exchange Commission.

The payout at maturity will be par plus 1.5 times any index gain, subject to a maximum return of 25.5% to 34.5% that will be set at pricing. Investors will receive par if the index declines by 10% or less and will lose 1% for every 1% that it declines beyond 10%.

The index is designed to reflect the excess returns available through the application of the Barclays Capital Pure Beta methodology to a basket of underlying physical commodities, which are selected so as to correspond to the commodities then included in the Dow Jones - UBS Commodity Index Excess Return. The methodology attempts to mitigate the potential effect of investment flow and supply disruption distortions by allowing the index to roll into one of a series of futures contracts with more distant expirations that could be less affected by negative roll yield, chosen using certain rules-based allocation criteria.

The notes are expected to price Oct. 27 and settle Oct. 30.

Barclays Capital Inc. is the agent.

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