Barclays to price callable contingent coupon notes linked to Chipotle

By Toni Weeks

San Luis Obispo, Calif., Aug. 25 – Barclays Bank plc plans to price callable contingent coupon notes due Sept. 1, 2016 linked to the common stock of Chipotle Mexican Grill, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a coupon of at least 2% (equivalent to 8% per year) if the closing price of Chipotle shares is greater than or equal to the barrier price, 70% of the initial share price, on the observation date for that quarter. The exact coupon will be set at pricing.

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 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 Chipotle 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.

The notes will price Aug. 27 and settle Aug. 29.

The Cusip number is 06741JW54.

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