Barclays plans callable contingent coupon notes tied to Tesoro

By Marisa Wong

Madison, Wis., May 30 - Barclays Bank plc plans to price callable contingent coupon notes due Dec. 4, 2014 linked to the common stock of Tesoro Corp., according to a 424B2 filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a coupon of at least 3.4375%, equivalent to 13.75% per year, if the closing price of Tesoro stock is greater than or equal to the barrier price, 65% of the initial share price, on the valuation date for that quarter. Otherwise, holders will not receive a contingent coupon for that quarter. The exact contingent coupon rate will be set at pricing.

The notes will be callable at par plus the contingent coupon, if any, on any interest payment date.

If the notes are not called and the final share price is greater than or equal to the barrier price, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the final share price is below the initial share price or, at Barclays' option, receive a number of Tesoro shares equal to $1,000 divided by the initial share price.

The notes (Cusip: 06741J2G3) are expected to price on May 31 and settle on June 5.

Barclays is the agent.

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