By Angela McDaniels
Tacoma, Wash., Aug. 30 - Barclays Bank plc priced $3.5 million principal amount of 0% double short leverage securities due Aug. 30, 2013 linked to the Barclays Capital 30Y Treasury Futures index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes priced at 103.6 for total proceeds of $3.62 million.
The notes are putable at any time, subject to a minimum of 1,000 securities, and they will be called if the index increases by more than 35%.
The payout at maturity or upon redemption will be par minus 200% of the index return plus an additional amount and minus an investor fee. The notes are not principal protected, so investors will experience a loss if the final index level is greater than the initial level.
The additional amount is equal to the interest accrued on the principal amount at a rate per year equal to overnight Libor, compounded daily.
The investor fee will be zero if the final valuation date occurs in the first year, 0.85% if it occurs in the second year and 1.7% if it occurs in the third year.
UBS Financial Services Inc. and Barclays Capital Inc. are the underwriters.
Issuer: | Barclays Bank plc
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Issue: | Double short leverage securities
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Underlying index: | Barclays Capital 30Y Treasury Futures index
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Amount: | $3,496,000
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Proceeds: | $3,621,856
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Maturity: | Aug. 30, 2013
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Coupon: | 0%
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Price: | 103.6
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Payout at maturity: | Par minus 200% of the index return plus the interest accrued on the principal amount at an annual rate equal to overnight Libor, compounded daily, and minus an investor fee
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Call: | If index increases by more than 35%
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Put option: | At any time
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Initial index level: | 197.001
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Pricing date: | Aug. 26
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Settlement date: | Aug. 31
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Underwriters: | UBS Financial Services Inc. and Barclays Capital Inc.
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Fees: | 3.6% of par
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Cusip: | 06740PKE5
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