Barclays to sell 10% exchangeables linked to Chicago Mercantile Exchange

By Jennifer Chiou

New York, March 7 - Barclays Bank plc is planning to price an issue of one-year 10% exchangeable series A notes linked to Chicago Mercantile Exchange Holdings Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will mature on March 30, 2007 and will pay interest monthly.

Payout at maturity will be determined according to the performance of Chicago Mercantile Exchange stock during the term of the notes. Investors will receive par unless Chicago Mercantile Exchange stock finishes below the initial share price and it falls below the protection price, which will be 90% of the initial price between March 28, 2006 and March 28, 2007. If the two conditions are met, investors will receive a number of Chicago Mercantile Exchange shares equal to the principal amount of notes divided by the initial share price.

The notes will be priced on March 28 and are expected to settle on March 31.

Barclays Capital will be the underwriter.

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