Published on 10/12/2010 in the Prospect News Structured Products Daily.
New Issue: Barclays sells $5 million more 8.5% reverse convertibles linked to American Express
By Susanna Moon
Chicago, Oct. 12 - Barclays Bank plc priced $5 million of additional 8.5% reverse convertible notes due Sept. 30, 2011 linked to American Express Co. shares, according to a 424B3 filing with the Securities and Exchange Commission.
This brings the total deal size to $6 million, up from $1 million.
The payout at maturity will be par in cash unless American Express shares fall below the protection price of $32.58, 75% of the initial price of $43.44, during the life of the notes and finish below the initial price, in which case the payout will be 23.020258 shares of American Express stock.
Barclays Capital Inc. is the agent.
Issuer: | Barclays Bank plc
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Issue: | Reverse convertible notes
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Underlying stock: | American Express Co. (Symbol: AXP)
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Amount: | $6 million, up from $1 million
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Maturity: | Sept. 30, 2011
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Coupon: | 8.5%, payable monthly
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Price: | Par
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Payout at maturity: | Par in cash unless American Express shares fall below the protection price of $32.58, 75% of the initial price, and finish below the initial price, in which case 23.020258 shares of American Express stock
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Initial price: | $43.44
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Protection price: | $32.58, 75% of $43.44
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Exchange ratio: | 23.020258
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Pricing dates: | Sept. 27 for $1 million; Oct. 12 for $5 million
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Settlement dates: | Sept. 30 for $1 million; Oct. 13 for $5 million
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Agent: | Barclays Capital Inc.
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Fees: | 2.5%
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Cusip: | 06740PRS7
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