Barclays plans contingent income autocallables linked to Facebook

By Angela McDaniels

Tacoma, Wash., May 29 – Barclays Bank plc plans to price contingent income autocallable securities due June 8, 2018 linked to the class A common stock of Facebook, Inc., according to an FWP filing with the Securities and Exchange Commission.

If Facebook shares close at or above the downside threshold level, 80% 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 8.5%. The exact rate will be set at pricing.

The notes will be called at par of $10 plus the contingent coupon if Facebook 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 Facebook shares equal to $10 divided by the initial share price or, at the issuer’s option, an amount in cash 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 June 5 and settle June 10.

The Cusip number is 06743N561.

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