Barclays plans contingent income autocallables linked to Microsoft

By Susanna Moon

Chicago, Jan. 31 - Barclays Bank plc plans to price contingent income autocallable securities due Feb. 10, 2017 with step-up redemption level linked to Microsoft Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.

If Microsoft stock closes at or above the downside threshold level, 80% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment of at least 2.5375% for that quarter.

If the shares close at or above the redemption level on any quarterly determination date other than the final date, the notes will be redeemed at par of $10 plus the contingent payment. The redemption level will be 105% of the initial share price for the first four review dates, stepping up to 110% of the initial share price for the next four dates and to 115% of the initial share price for the final four dates.

If the notes are not called and the stock finishes at or above the downside threshold level, the payout at maturity will be par plus the contingent payment.

Otherwise, the payout will be a number of Microsoft shares equal to $10 divided by the initial share price or, at the issuer's option, the cash equivalent.

Barclays is the agent with distribution through Morgan Stanley Smith Barney LLC.

The notes will price on Feb. 7 and settle on Feb. 12.

The Cusip number is 06742B626.

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