Barclays plans contingent income autocallables linked to McDonald’s

By Marisa Wong

Morgantown, W.Va., Oct. 16 – Barclays Bank plc plans to price contingent income autocallable securities due Oct. 19, 2018 linked to McDonald’s Corp. shares, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of at least 8% if the shares close at or above the 80% downside threshold level on the determination date for that quarter.

The notes will be called at par plus the contingent coupon if the stock closes at or above the applicable redemption threshold level on any quarterly determination date. The redemption threshold level is 105% of the initial level for the first four determination dates, stepping up to 110% of the initial level for the next four dates and to 115% of the initial level for the final four dates.

The payout at maturity will be par plus the final coupon unless the shares finish below the downside threshold level, in which case investors will receive a number of McDonald’s shares equal to $10 divided by the initial price or, at the issuer’s option, the cash equivalent.

Barclays is the agent with Morgan Stanley Wealth Management handling distribution.

The notes will price on Oct. 16 and settle on Oct. 21.

The Cusip number is 06743Q325.

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