Barclays plans three-year contingent income autocallables on Microsoft

By Tali Rackner

Norfolk, Va., Oct. 14 – Barclays Bank plc plans to price contingent income autocallable securities with step-up redemption threshold level feature due Oct. 24, 2019 linked to the common stock of Microsoft Corp., 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 9.25% if the stock closes at or above its downside threshold level, 80% of the initial level, on the determination date for that quarter. The exact coupon will be set at pricing.

The notes will be called at par plus the contingent coupon if the stock closes at or above its redemption threshold level on any determination date other than the final date. The redemption threshold is 105% for the four determination dates in 2017, stepping up to 110% for the four determination dates in 2018 and to 115% for the three determination dates in 2019.

The payout at maturity will be par unless Microsoft shares finish below the 80% downside threshold level, in which case investors will lose 1% for each 1% decline.

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

The notes will price on Oct. 21 and settle on Oct. 26.

The Cusip number is 06745R602.

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