By Marisa Wong
Milwaukee, Feb. 8 - Barclays Bank plc priced $1 million of callable reverse convertible notes due Aug. 10, 2010 linked to the common stock of Alcoa Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The six-month notes will pay 6.05% for an annualized coupon of 12.1%. Interest will be payable monthly.
If the closing price of Alcoa stock on May 5 is greater than or equal to the initial share price of $13.18, the notes will be automatically called at par.
If the notes are not called, the payout at maturity will be par unless Alcoa stock falls below the protection level - 70% of the initial share price - during the life of the notes and finishes below the initial price. In that case, the payout will be a number of Alcoa shares equal to $1,000 divided by the initial share price.
The notes priced on Feb. 5 and settled Feb. 8.
Barclays Capital Inc. is the agent.
| Issuer: | Barclays Bank plc
|
| Issue: | Callable reverse convertible notes
|
| Underlying stock: | Alcoa Inc.
|
| Amount: | $1 million
|
| Maturity: | Aug. 10, 2010
|
| Coupon: | 12.1%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | Par unless Alcoa shares fall below 70% of the initial price during the life of the notes and finish below the initial price, in which case payout will be 75.872534 shares of Alcoa
|
| Initial price: | $13.18
|
| Protection price: | $9.23, 70% of $13.18
|
| Call: | At par on May 5 if Alcoa stock closes at or above initial price
|
| Pricing date: | Feb. 5
|
| Settlement date: | Feb. 8
|
| Agent: | Barclays Capital Inc.
|
| Fees: | 2.25%
|
| Cusip: | 06740JWD8
|
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