Barclays to price contingent income autocallables linked to Alibaba

By Devika Patel

Knoxville, Tenn., July 2 – Barclays Bank plc plans to price contingent income autocallable securities due July 9, 2021 linked to the American Depositary Shares of Alibaba Group Holding Ltd., according to a 424B2 filing with the Securities and Exchange Commission.

If Alibaba ADS close at or above the downside threshold level, 70% of the initial price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of at least 10%, with the exact coupon to be set at pricing.

The notes will be called at par of $10 plus the contingent coupon if Alibaba ADS close at or above the initial price on any determination date other than the final one, beginning on Oct. 8.

If the final price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will lose 1% for every 1% that the final price is less than the initial price.

Barclays is the agent. Morgan Stanley Wealth Management is a dealer.

The notes (Cusip: 06746T615) will price on July 6 and settle on July 11.

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