Barclays plans six-month 12.75% reverse convertibles on U.S. Steel

By Toni Weeks

San Luis Obispo, Calif., April 23 – Barclays Bank plc plans to price 12.75% reverse convertible notes due Oct. 29, 2015 linked to United States Steel Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.

Interest will be payable monthly.

A knock-in event will occur if the stock price closes below the barrier price, 70% of the initial share price, on any trading day during the life of the notes.

The payout at maturity will be par unless the final share price is less than the initial price and a knock-in event has occurred, in which case the payout will be par plus the stock return or, at the issuer’s option, a number of U.S. Steel shares equal to $1,000 divided by the initial share price.

The notes (Cusip: 06741WAT7) are expected to price April 24 and settle April 29.

Barclays is the agent.

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