Published on 6/26/2012 in the Prospect News Structured Products Daily.
New Issue: Barclays prices $3.09 million contingent income autocallables linked to Starbucks
By Angela McDaniels
Tacoma, Wash., June 26 - Barclays Bank plc priced $3.09 million of contingent income autocallable securities due June 25, 2015 with step-down redemption threshold level feature linked to the common stock of Starbucks Corp., according to a 424B2 filing with the Securities and Exchange Commission.
If Starbucks stock closes at or above the downside threshold level - 70% of the initial share price - on a quarterly determination date, investors will receive a contingent payment of $0.301 for each $10.00 note. Otherwise, no contingent payment will be made for that period.
If the closing share price is greater than or equal to the redemption threshold level on any of the first 11 quarterly determination dates, the notes will be automatically redeemed at par plus the contingent payment. The redemption threshold level is 95% of the initial share price on determination dates one through four, 90% of the initial share price on determination dates five through eight and 85% of the initial share price on determination dates nine through 11.
If the notes are not called and the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the contingent payment. If the final share price is less than the downside threshold level, the payout will be a number of Starbucks shares equal to $10.00 divided by the initial share price or, at the issuer's option, a cash amount equal to the value of those shares.
Barclays Capital Inc. is the agent. Distribution is through Morgan Stanley Smith Barney LLC.
| Issuer: | Barclays Bank plc
|
| Issue: | Contingent income autocallable securities with step-down redemption threshold level feature
|
| Underlying stock: | Starbucks Corp. (Symbol: SBUX)
|
| Amount: | $3,090,500
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| Maturity: | June 25, 2015
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| Contingent payment: | If Starbucks stock closes at or above downside threshold on quarterly determination date, $0.301 per note; otherwise, no contingent payment will be made for that period
|
| Price: | Par of $10.00
|
| Payout at maturity: | If final share price is greater than or equal to downside threshold, par plus $0.301; if final share price is less than downside threshold, 0.18302 Starbucks shares or cash amount equal to value of those shares
|
| Call: | Automatically at par plus $0.301 if closing share price is greater than or equal to redemption threshold level on Sept. 24, 2012, Dec. 24, 2012, March 22, 2013, June 24, 2013, Sept. 23, 2013, Dec. 23, 2013, March 24, 2014, June 23, 2014, Sept. 22, 2014, Dec. 22, 2014 or March 23, 2015
|
| Initial share price: | $54.64
|
| Downside threshold: | $38.25, 70% of initial share price
|
| Redemption threshold: | $51.91, or 95% of initial price, on redemption dates one through four; $49.18, or 90% of initial price, on redemption dates five through eight; $46.44, or 85% of initial price, on redemption dates nine through 11
|
| Pricing date: | June 22
|
| Settlement date: | June 27
|
| Agent: | Barclays Capital Inc.
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| Distribution: | Morgan Stanley Smith Barney LLC
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| Fees: | 2.25%
|
| Cusip: | 06742A834
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