By Jennifer Chiou
New York, Oct. 3 - Barclays Bank plc priced $18.3 million of 9% STEP Income Securities due Oct. 16, 2012 linked to the performance of International Paper Co. shares, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
If the price of International Paper shares finishes at or above the STEP level - 109% of the initial price - the payout at maturity will be par of $10 plus 9.47%.
If the stock finishes at or above 90% of the initial value but below the STEP level, the payout will be par.
Investors will be exposed to losses beyond the 10% buffer.
Bank of America Merrill Lynch is the agent.
| Issuer: | Barclays Bank plc
|
| Issue: | STEP Income Securities
|
| Underlying stock: | International Paper Co. (NYSE: IP)
|
| Amount: | $18,297,790
|
| Maturity: | Oct. 16, 2012
|
| Coupon: | 9%, payable quarterly
|
| Price: | Par of $10.00
|
| Payout at maturity: | If International Paper shares finish at or above STEP level, par plus $0.947 per note; par if shares finish at or above threshold value but below STEP level; exposure to losses beyond 10% buffer
|
| Initial price: | $24.14
|
| STEP level: | $26.31, 109% of initial value
|
| Threshold value: | $21.73, 90% of initial value
|
| Pricing date: | Sept. 29
|
| Settlement date: | Oct. 7
|
| Agent: | Bank of America Merrill Lynch
|
| Fees: | 1.75%
|
| Cusip: | 06741L799
|
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