Barclays plans contingent income autocallables linked to Tesla

By Angela McDaniels

Tacoma, Wash., Oct. 24 – Barclays Bank plc plans to price contingent income autocallable securities due Nov. 5, 2015 linked to the common stock of Tesla Motors, Inc., according to an FWP filing with the Securities and Exchange Commission.

If Tesla shares close at or above the downside threshold level, 70% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of at least 15.5%. The exact rate will be set at pricing.

The notes will be called at par of $10 plus the contingent coupon if Tesla shares close at or above the initial share price on any quarterly determination date other than the final determination date.

If the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will receive a number of Tesla shares equal to $10 divided by the initial share price or, at the issuer’s option, a cash amount equal to the value of those shares.

Barclays is the agent. Morgan Stanley Smith Barney LLC is handling distribution.

The notes are expected to price Oct. 31 and settle Nov. 5.

The Cusip number is 06740D665.

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