Published on 8/28/2009 in the Prospect News Structured Products Daily.
New Issue: Barclays prices $2 million 12% reverse convertibles linked to five stocks
By Jennifer Chiou
New York, Aug. 28 - Barclays Bank plc priced $2 million of 12% reverse convertible notes due Aug. 30, 2010 linked to a basket of common stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The basket includes equal weights of Nokia Corp., General Electric Co., Boeing Co., Goldman Sachs Group, Inc. and Pfizer Inc.
Interest will be payable monthly.
For each basket stock that falls below its protection price - 70% of its initial share price - during the life of the notes and finishes below its initial price, the payout at maturity will be a number of shares of that stock equal to $200 divided by the initial price of that stock.
For each stock that remains above its protection price throughout the life of the notes or finishes above its initial price, the payout will be $200 in cash.
Barclays Capital Inc. is the agent.
| Issuer: | Barclays Bank plc
|
| Issue: | Reverse convertible notes
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| Underlying stocks: | Nokia Corp. (Symbol: NOK), General Electric Co. (Symbol: GE), Boeing Co. (Symbol: BA), Goldman Sachs Group, Inc. (Symbol: GS) and Pfizer Inc. (Symbol: PFE)
|
| Amount: | $2 million
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| Maturity: | Aug. 30, 2010
|
| Coupon: | 12%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | For each basket stock that falls below its protection price during the life of the notes and finishes below its initial price, a number of shares of that stock equal to $200 divided by the initial price of that stock; $200 in cash for each stock that remains above its protection price throughout the life of the notes or finishes above its initial price
|
| Initial prices: | Nokia Corp. at $13.13, General Electric Co. at $14.11, Boeing Co. at $47.82, Goldman Sachs Group, Inc. at $165.95 and Pfizer Inc. at $16.77
|
| Protection levels: | Nokia Corp. at $9.19, General Electric Co. at $9.88, Boeing Co. at $33.47, Goldman Sachs Group, Inc. at $116.17 and Pfizer Inc. at $11.74; 70% of the initial level
|
| Pricing date: | Aug. 26
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| Settlement date: | Aug. 31
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| Agent: | Barclays Capital
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| Fees: | 0.75%
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