New Issue: Barclays prices $1 million 16.5% notes linked to KB Home

By Angela McDaniels

Seattle, Oct. 30 - Barclays Bank plc priced a $1 million issue of reverse convertible notes due April 30, 2007 linked to KB Home stock, according to an FWP filing with the Securities and Exchange Commission.

The six-month notes will pay 8.25% for an annualized rate of 16.5%.

The payout at maturity will be par in cash if KB Home stock stays at or above the protection price of $36.408 during the life of the notes and finishes at or above the initial price of $45.51. Otherwise, the payout will be a number of KB Home shares equal to $1,000 divided by the initial share price.

Issuer:	Barclays Bank plc
Issue:	Reverse convertible notes
Underlying stock:	KB Home
Amount:	$1 million
Maturity:	April 30, 2007
Coupon:	16.5%, payable monthly
Price:	Par
Payout at maturity:	Par in cash unless KB Home stock falls below the protection price of $36.408 and finishes below the initial price of $45.51, in which case 21.97319 shares of KB Home stock
Initial share price:	$45.51
Protection price:	$36.408, 80% of initial share price
Pricing date:	Oct. 27
Settlement date:	Oct. 31
Agent:	Barclays Capital
Agent fees:	150 basis points

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