By Jennifer Chiou
New York, June 5 - Barclays Bank plc priced $2 million of callable contingent coupon notes due June 4, 2015 linked to the common stock of American Capital Agency Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a 3.7875% coupon (equivalent to 15.15% per year) if the closing price of American Capital Agency shares is greater than or equal to the barrier price, 60% of the initial share price, on the valuation date for that quarter. Otherwise, holders will not receive a contingent interest payment for that quarter.
The notes are 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 less than the initial share price or, at Barclays' option, they will receive a number of American Capital Agency shares equal to $1,000 divided by the initial share price.
Barclays is the agent.
Issuer: | Barclays Bank plc
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Issue: | Callable contingent coupon notes
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Underlying stock: | American Capital Agency Corp. (Symbol: AGNC)
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Amount: | $2 million
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Maturity: | June 4, 2015
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Coupon: | 15.15% per year, payable quarterly if American Capital Agency shares close at or above barrier price on valuation date for that quarter
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Price: | Par
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Payout at maturity: | Par if final share price is greater than or equal to barrier price; otherwise, exposure to share price decline or, at Barclays' option, 37.87879 American Capital Agency shares
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Call option: | At par plus contingent coupon, if any, on any interest payment date
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Initial share price: | $26.40
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Barrier price: | $15.84, 60% of initial share price
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Pricing date: | May 31
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Settlement date: | June 5
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Agent: | Barclays
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Fees: | 1.5%
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Cusip: | 06741J2J7
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