By Jennifer Chiou
New York, Feb. 24 - Barclays Bank plc priced $2 million of 14% annualized callable reverse convertible notes due Aug. 27, 2010 linked to the common stock of Peabody Energy Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable monthly.
If the closing price of Peabody Energy stock on the May 24, 2010 call valuation date is greater than or equal to the initial share price of $45.30, the notes will be automatically called at par.
If the notes are not called, the payout at maturity will be par unless Peabody Energy stock falls below the protection level - 75% 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 Peabody Energy shares equal to $1,000 divided by the initial share price.
Barclays Capital Inc. is the agent.
| Issuer: | Barclays Bank plc
|
| Issue: | Callable reverse convertible notes
|
| Underlying stock: | Peabody Energy Corp. (Symbol: BTU)
|
| Amount: | $2 million
|
| Maturity: | Aug. 27, 2010
|
| Coupon: | 14%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | Par unless Peabody Energy shares fall below 75% of the initial price during the life of the notes and finish below the initial price, in which case payout will be 22.0750551 shares of Peabody Energy
|
| Initial price: | $45.30
|
| Protection price: | $33.98, 75% of $45.30
|
| Call: | At par if Peabody Energy stock closes at or above initial price on the call valuation date
|
| Pricing date: | Feb. 24
|
| Settlement date: | Feb. 26
|
| Agent: | Barclays Capital Inc.
|
| Fees: | 2.4%
|
| Cusip: | 06740JN22
|
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