Barclays plans contingent income autocallables tied to Bank of America

By Toni Weeks

San Luis Obispo, Calif., July 17 – Barclays Bank plc plans to price contingent income autocallable securities due July 27, 2018 linked to Bank of America Corp. shares, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon of at least 2.0125% if Bank of America stock closes at or above the 80% downside threshold level on the determination date for that quarter. The exact coupon will be set at pricing.

If the shares close at or above the applicable redemption threshold level on any of the first 11 quarterly determination dates, the notes will be called at par plus the contingent coupon. The applicable redemption threshold level will be 105% of the initial level on the first four quarterly determination dates, 110% of the initial level on the next four determination dates and 115% of the initial level on the final three determination dates.

If the notes are not called and Bank of America stock finishes at or above the 80% downside threshold level, the payout at maturity will be par plus the contingent payment.

Otherwise, investors will receive a number of shares of Bank of America stock equal to $10 divided by the initial share price or, at the issuer’s option, the cash equivalent.

Barclays is the agent with Morgan Stanley Wealth Management as dealer.

The notes are expected to price July 24 and settle July 29.

The Cusip number is 06743Q861.

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