Barclays to price notes with variable coupon linked to 10 stocks

By Toni Weeks

San Diego, Jan. 10 - Barclays Bank plc plans to price notes due Jan. 31, 2017 linked to a basket of 10 common stocks, according a 424B2 filing with the Securities and Exchange Commission.

The basket includes equal weights of Best Buy Co., Inc., Freeport-McMoRan Copper & Gold Inc., Green Mountain Coffee Roasters, Inc., Hewlett-Packard Co., J.C. Penney Co., Inc., Micron Technology, Inc., Staples, Inc., Computer Sciences Corp., Safeway Inc. and AK Steel Holding Corp.

The notes will pay a coupon each year equal to the greater of (a) the average of the stock performances on the applicable coupon observation date and (b) zero.

If a stock's return is greater than or equal to zero, its performance will be equal to the return cap, which is expected to be 10% to 12% and will be set at pricing. Otherwise, its performance will be the greater of the stock return and negative 25%.

The payout at maturity will be par plus the final coupon payment, if any.

The notes (Cusip: 06738KG21) are expected to price Jan. 26 and settle Jan. 31.

Barclays Capital Inc. is the agent.

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