Published on 8/29/2014 in the Prospect News Structured Products Daily.
New Issue: Barclays prices $1.65 million callable contingent coupon notes linked to Chipotle
By Toni Weeks
San Luis Obispo, Calif., Aug. 29 – Barclays Bank plc priced $1.65 million of 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 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 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.
| Issuer: | Barclays Bank plc
|
| Issue: | Callable contingent coupon notes
|
| Underlying stock: | Chipotle Mexican Grill, Inc. (Symbol: CMG)
|
| Amount: | $1,652,000
|
| Maturity: | Sept. 1, 2016
|
| Coupon: | 8% per year, payable quarterly, if stock closes at or above barrier level on quarterly observation date
|
| Price: | Par
|
| Payout at maturity: | Par unless stock finishes below barrier price, in which case 1.47704 Chipotle shares or, at issuer’s option, cash value of those shares
|
| Call option: | At par plus contingent coupon, if any, on any interest payment date
|
| Initial price: | $677.03
|
| Barrier/knock-in level: | $473.92, 70% of initial price
|
| Pricing date: | Aug. 27
|
| Settlement date: | Aug. 29
|
| Agent: | Barclays
|
| Fees: | 1.75%
|
| Cusip: | 06741JW54
|
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