Barclays to price 9% STEP Income Securities linked to Goodyear

By Jennifer Chiou

New York, Aug. 2 - Barclays Bank plc plans to price 9% STEP Income Securities due August 2012 linked to the common stock of Goodyear Tire & Rubber Co., according to an FWP with the Securities and Exchange Commission.

Interest will be payable quarterly.

If the final price of Goodyear stock is greater than or equal to the step level - 109% of the initial share price - the payout at maturity will be par of $10 plus the step payment, which is expected to be 1% to 5% and will be set at pricing.

If the final share price is greater than or equal to the threshold value - 95% of the initial share price - but is less than the step level, the payout will be par. Investors will lose 1% for every 1% that the share price declines below the threshold value.

The notes are expected to price and settle in August.

Bank of America Merrill Lynch is the agent.

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