Published on 10/27/2009 in the Prospect News Structured Products Daily.
New Issue: Barclays prices $27.81 million 15.2% RevCons linked to Bank of America
By Angela McDaniels
Tacoma, Wash., Oct. 27 - Barclays Bank plc priced $27.81 million of reverse convertible securities due April 28, 2010 linked to the common stock of Bank of America Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Morgan Stanley Smith Barney LLC and Barclays Capital Inc. are the agents.
The six-month notes pay 7.6% for an annualized coupon of 15.2%. Interest is payable monthly.
The payout at maturity will be par unless Bank of America stock falls by 25% or more during the life of the notes and finishes below the initial level, in which case the payout will be a number of Bank of America shares equal to $1,000 divided by the initial share price or, at the issuer's option, the value of those shares in cash.
| Issuer: | Barclays Bank plc
|
| Issue: | Reverse convertible securities
|
| Underlying stock: | Bank of America Corp. (NYSE: BAC)
|
| Amount: | $27,814,000
|
| Maturity: | April 28, 2010
|
| Coupon: | 15.2%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | If Bank of America stock falls to or below trigger price during life of notes and final share price is less than initial share price, 61.65228 Bank of America shares or equivalent value in cash; otherwise, par
|
| Initial share price: | $16.22
|
| Trigger price: | $12.165, 75% of initial price
|
| Pricing date: | Oct. 23
|
| Settlement date: | Oct. 28
|
| Agents: | Morgan Stanley Smith Barney LLC and Barclays Capital Inc.
|
| Fees: | 2%
|
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