Barclays plans 10.2% Callable One Observation Reverse Convertibles linked to Goldman Sachs

By E. Janene Geiss

Philadelphia, March 17 - Barclays Bank plc plans to price Callable One Observation Reverse Convertible Notes due Sept. 30, 2009 linked to the common stock of the Goldman Sachs Group, Inc., according to an FWP filing with the Securities and Exchange Commission.

The six-month notes will pay 5.1% for an annualized coupon of 10.2%. Interest will be payable monthly.

If Goldman Sachs stock closes at or above the initial share price on June 25, 2009, then the notes will be automatically called at par.

If the notes are not called, then the payout at maturity will be par unless the stock closes below the protection price - 60% of the initial price - on Sept. 25, 2009, in which case investors will receive a number of Goldman Sachs shares equal to $1,000 divided by the initial price or, at Barclays' option, par minus the share price decline.

The notes will price March 26 and settle March 31.

Barclays Capital Inc. is the agent.

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