Published on 6/16/2009 in the Prospect News Structured Products Daily.
New Issue: Barclays sells $2.5 million 10.5% One Observation Reverse Convertibles tied to U.S. Natural Gas Fund
New York, June 16 - Barclays Bank plc priced $2.5 million of 10.5% Callable One Observation Reverse Convertible notes due June 16, 2010 linked to United States Natural Gas Fund, LP shares, according to a 424B2 filing with the Securities and Exchange Commission.
If United States Natural Gas Fund shares close at or above their initial price on a call valuation date, the notes will be automatically called at par. The call valuation dates are Sept. 11, 2009, Dec. 11, 2009 and March 12, 2010.
If the notes are not called, the payout at maturity will be par in cash unless United States Natural Gas Fund shares close below the protection price of $7.34, 50% of the initial price of $14.67, on June 11, 2010, in which case the payout will be 68.166326 shares of United States Natural Gas Fund stock.
Barclays Capital is the agent.
| Issuer: | Barclays Bank plc
|
| Issue: | Callable One Observation Reverse Convertible notes
|
| Underlying stock: | United States Natural Gas Fund, LP (Symbol: UNG)
|
| Amount: | $2.5 million
|
| Maturity: | June 16, 2010
|
| Coupon: | 10.5%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | Par in cash unless United States Natural Gas Fund shares close below the protection price of $7.34, 50% of the initial price, on June 11, 2010, in which case 68.166326 shares of United States Natural Gas Fund stock
|
| Call: | Automatically at par if shares close at or above the initial share price on Sept. 11, 2009, Dec. 11, 2009 or March 12, 2010
|
| Initial price: | $14.67
|
| Protection price: | $7.34, 50% of $14.67
|
| Exchange ratio: | 68.166326
|
| Pricing date: | June 12
|
| Settlement date: | June 17
|
| Agent: | Barclays Capital
|
| Fees: | 3.375%
|
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