Published on 6/27/2014 in the Prospect News Structured Products Daily.
New Issue: Barclays prices $4.09 million callable contingent coupon notes linked to Peabody
By Marisa Wong
Madison, Wis., June 27 – Barclays Bank plc priced $4.09 million callable contingent coupon notes due June 30, 2016 linked to the common stock of Peabody Energy Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a coupon of 3.4375% (equivalent to 13.75% per year) if the closing price of Peabody shares is greater than or equal to the barrier price, 70% of the initial share price, on the observation date for that quarter.
The notes are callable on any coupon payment date at par.
If the notes are not called and the final share price is greater than or equal to the 70% knock-in barrier price, the payout at maturity will be par. If the final share price is less than the barrier price, investors will receive a number of Peabody 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
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| Issue: | Callable contingent coupon notes
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| Underlying stock: | Peabody Energy Corp. (Symbol: BTU)
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| Amount: | $4,088,000
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| Maturity: | June 30, 2016
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| Coupon: | 13.75% per year, payable quarterly if Peabody 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, 60.60606 Peabody 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: | $16.50
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| Barrier/knock-in price: | $11.55, 70% of initial share price
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| Pricing date: | June 26
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| Settlement date: | June 30
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| Agent: | Barclays
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| Fees: | 1.75%
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| Cusip: | 06741JU23
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