Published on 6/22/2010 in the Prospect News Structured Products Daily.
New Issue: Barclays prices $1.3 million autocallable notes on worst performing component of stock basket
By Marisa Wong
Milwaukee, June 22 - Barclays Bank plc priced $1.3 million of 0% autocallable notes due June 29, 2011 linked to the worst performing component in a basket of common stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The basket comprises the common stocks of Boston Scientific Corp., Apple Inc. and Goldman Sachs Group, Inc.
The notes will be automatically called at par plus the applicable premium if the return of the worst performing basket component is greater than or equal to 0% on any of 11 monthly observation dates.
The applicable premium is 1.417% for each observation date that the return of the worst performing stock is at least negative 40%.
The observation dates are July 19, Aug. 18, Sept. 20, Oct. 18, Nov. 18, Dec. 20, Jan. 18, 2011, Feb. 18, 2011, March 18, 2011, April 18, 2011 and May 18, 2011.
If the notes are not called and the final share price of the worst performing stock has not fallen by more than 40% of the initial price, the payout at maturity will be par in cash plus the applicable premium.
Otherwise, the payout will be a number of shares of the worst performing stock equal to $1,000 principal amount divided by the initial share price of the worst performing stock or, at the issuer's election, a cash payment equal to par plus the lowest basket component return.
Barclays Capital Inc. is the agent.
| Issuer: | Barclays Bank plc
|
| Issue: | Autocallable notes linked to the worst performing component of a basket of common stocks
|
| Underlying stocks: | Boston Scientific Corp. (Symbol: BSX), Apple Inc. (Symbol: AAPL) and Goldman Sachs Group, Inc. (Symbol: GS)
|
| Amount: | $1,303,000
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| Maturity: | June 29, 2011
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| Coupon: | 0%
|
| Price: | Par
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| Payout at maturity: | If final share price of worst performing stock has not fallen by more than 40% of initial price, par in cash plus applicable premium; otherwise, a number of shares of the worst performing stock equal to $1,000 principal amount divided by initial share price of worst performing stock or, at issuer's election, cash payment equal to par plus lowest stock return
|
| Call: | Automatically at par plus applicable premium if return of worst performing stock is greater than or equal to 0% on any of observation dates
|
| Applicable premium: | 1.417% for each observation date that return of worst performing stock is at least negative 40%
|
| Observation dates: | July 19, Aug. 18, Sept. 20, Oct. 18, Nov. 18, Dec. 20, Jan. 18, 2011, Feb. 18, 2011, March 18, 2011, April 18, 2011 and May 18, 2011
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| Initial prices: | $6.33 for Boston Scientific, $274.16 for Apple and $138.18 for Goldman Sachs
|
| Barrier: | Negative 40%
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| Pricing date: | June 18
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| Settlement date: | June 23
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| Agent: | Barclays Capital Inc.
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| Fees: | 3%
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| Cusip: | 06740PAR7
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