Barclays plans contingent income notes with step-up call level on Amgen

By Marisa Wong

Morgantown, W.Va., July 6 – Barclays Bank plc plans to price contingent income autocallable securities due July 10, 2020 with step-up redemption threshold level feature linked to the common stock of Amgen Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annualized rate of 9.25% if the stock closes at or above the downside threshold level, 80% of the initial share price, on a determination date for that quarter.

The notes will be called at par of $10 plus the contingent coupon if the shares close at or above the applicable redemption threshold on any determination date other than the final date. The applicable redemption threshold is 105% of the initial level for the first four quarterly determination dates, stepping up to 110% for the next four dates and to 115% for the three dates after that.

The payout at maturity will be par unless the stock finishes below its 80% downside threshold, in which case investors will be fully exposed to any losses.

Barclays is the agent with Morgan Stanley Smith Barney LLC handling distribution.

The notes will price on July 7.

The Cusip number is 06746K226.

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