By Marisa Wong
Madison, Wis., March 7 - Barclays Bank plc priced $1.85 million of 0% notes due March 10, 2016 linked to the EquityCompass Share Buyback index, according to a 424B2 filing with the Securities and Exchange Commission.
For each $1,000 principal amount of notes, the payout at maturity or upon redemption will be 97.5% times the greater of (a) zero and (b) the sum of (i) $1,000 plus (ii) $1,000 multiplied by the closing indicative note return.
The closing indicative note return on any day is the percentage change of the closing indicative note value from the initial closing indicative note value to the current closing indicative note value.
The closing indicative note value on the pricing date will be $1,000. On any subsequent business day, it will be (a) the closing indicative note value on the last note rebalancing date multiplied by (b) one plus the net index periodic return as of that business day. The note rebalancing dates are the sixth calendar day of each month.
The net index periodic return equals the index periodic return as of that business day minus an investor fee of 0.9% per year.
The index periodic return equals the performance of the index from its closing level on the last note rebalancing date to its closing level on that business day.
The notes are putable, and they will be called if the closing indicative note value falls to or below $250.
The index seeks to capture returns that may be available from investing in a basket of stocks that are selected using the EquityCompass Share BuyBack Strategy, a trading restriction filter and concentration procedures. The strategy selects a portfolio of stocks of up to 30 companies with the most significant share buyback announcements in the prior three months. It is based on the premise that stocks of companies that announce share buybacks may be more likely to perform well because share buybacks are a signal to the market that the management of a company believes the company's shares are undervalued.
Barclays is the agent.
| Issuer: | Barclays Bank plc
|
| Issue: | Notes
|
| Underlying index: | EquityCompass Share Buyback index
|
| Amount: | $1,848,000
|
| Maturity: | March 10, 2016
|
| Coupon: | 0%
|
| Price: | Variable
|
| Payout at maturity: | 97.5% times greater of (a) zero and (b) sum of (i) $1,000 plus (ii) $1,000 multiplied by closing indicative note return
|
| Closing indicative note value: | $1,000 on pricing date; after that, (a) closing indicative note value on last note rebalancing date, which occur monthly, multiplied by (b) one plus percentage change in index from last rebalancing date to current date minus investor fee of 0.9% per year
|
| Put option: | Subject to minimum of 10 notes
|
| Call: | Automatically if closing indicative note value falls to or below $250
|
| Initial index level: | 131.8584
|
| Pricing date: | March 5
|
| Settlement date: | March 8
|
| Agent: | Barclays
|
| Fees: | 2.5%
|
| Cusip: | 06741TNS2
|
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