Published on 2/26/2014 in the Prospect News Structured Products Daily.
New Issue: Barclays prices $2.61 million callable contingent coupon notes linked to Walgreen
By Toni Weeks
San Luis Obispo, Calif., Feb. 26 - Barclays Bank plc priced $2.61 million of callable contingent coupon notes due Feb. 25, 2016 linked to the common stock of Walgreen Co., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a coupon of 1.975% (equivalent to 7.9% per year) each quarter if the closing price of Walgreen shares is greater than or equal to the barrier price, 75% of the initial share price. Otherwise, holders will not receive the contingent interest payment for that quarter.
The notes are callable on any quarterly contingent coupon payment date at par plus the contingent coupon, if any.
If the notes are not called, the payout at maturity will be par if the final share price is greater than or equal to the barrier price. If the final share price is less than the barrier price, investors will receive a number of Walgreen shares equal to $1,000 divided by the initial share price or, at Barclays' option, an amount in cash equal to the value of those shares.
Barclays is the agent.
| Issuer: | Barclays Bank plc
|
| Issue: | Callable contingent coupon notes
|
| Underlying stock: | Walgreen Co. (Symbol: WAG)
|
| Amount: | $2,605,000
|
| Maturity: | Feb. 25, 2016
|
| Coupon: | 7.9% per year, payable quarterly if Walgreen shares close at or above barrier price on valuation date for that quarter
|
| Price: | Par
|
| 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, 15.07841 Walgreen shares
|
| Call option: | At par plus contingent coupon, if any, on any interest payment date from May 21, 2014 onward
|
| Initial share price: | $66.32
|
| Barrier price: | $49.74, 75% of initial share price
|
| Pricing date: | Feb. 21
|
| Settlement date: | Feb. 26
|
| Agent: | Barclays
|
| Fees: | 1.75%
|
| Cusip: | 06741J6H7
|
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