By Marisa Wong
Madison, Wis., May 25 - Barclays Bank plc priced $2.5 million of 0% notes due May 29, 2018 linked to the Barclays Backwardation Alpha DJ-UBSCI Total Return index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are callable and putable. A holder who wishes to exercise the put option must put back at least 100 notes. In addition, the company may choose to redeem the notes if the intraday indicative value of the index is less than 50% of the initial level at any time during the term of the notes.
The payout upon redemption or at maturity will be par plus the index return minus an index fee of 1.5% per year.
The index is designed to provide investors with a market-neutral index that tracks the performance of a basket of long and short single-commodity indexes. The short portfolio consists of notional short positions in Barclays single-commodity indexes based on the same commodities as those included in the Dow Jones - UBS Commodity index. The long portfolio consists of notional long positions in Barclays single-commodity indexes selected for their high degree of backwardation.
The forward price curve for a commodity is said to be in "backwardation" when the prices of the contracts with shorter-term expirations will be higher than for contracts with longer-term expirations.
Barclays Capital Inc. is the agent.
| Issuer: | Barclays Bank plc
|
| Issue: | Notes
|
| Underlying index: | Barclays Backwardation Alpha DJ-UBSCI Total Return index
|
| Amount: | $2.5 million
|
| Maturity: | May 29, 2018
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par plus index return minus index fee of 1.5% per year
|
| Call option: | Yes
|
| Put option: | Subject to minimum of 100 notes
|
| Initial index level: | 1,090.4850
|
| Pricing date: | May 23
|
| Settlement date: | May 29
|
| Agent: | Barclays Capital Inc.
|
| Fees: | None
|
| Cusip: | 06738K5S6
|
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