Published on 7/29/2014 in the Prospect News Structured Products Daily.
New Issue: Barclays prices $1.2 million notes due 2015 tied to basket of 16 stocks
By Jennifer Chiou
New York, July 29 – Barclays Bank plc priced $1,198,000 of 0% notes due Aug. 12, 2015 linked to a basket of 16 stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The underlying companies are Pfizer Inc., Merck & Co., Inc., Sanofi, Bristol-Myers Squibb Co., Walgreen Co., Eli Lilly & Co., Mylan Inc., Perrigo Co. and Zoetis Inc., each with a 6 2/3% weight, and Biogen Idec Inc., Celgene Corp., Valeant Pharmaceuticals International, Inc., Illumina, Inc., Endo Health Solutions Inc., Impax Laboratories, Inc. and Gilead Sciences, Inc., each with a 5 5/7% weight.
For each $1,000 principal amount of notes, the payout at maturity will be par plus the return multiplied by an adjustment factor of 99.95%. Because of the adjustment factor, investors will be exposed to losses if the basket return is less than about 0.05%.
The final stock prices will be equal to the average of the share prices on the five trading days ending Aug. 7, 2015.
Barclays is the underwriter. J.P. Morgan Securities LLC and JPMorgan Chase Bank, NA will act as placement agents.
| Issuer: | Barclays Bank plc
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| Issue: | Notes
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| Basket stocks: | Pfizer Inc., Merck & Co., Inc., Sanofi, Bristol-Myers Squibb Co., Walgreen Co., Eli Lilly & Co., Mylan Inc., Perrigo Co. and Zoetis Inc., each with a 6 2/3% weight; Biogen Idec Inc., Celgene Corp., Valeant Pharmaceuticals International, Inc., Illumina, Inc., Endo Health Solutions Inc., Impax Laboratories, Inc. and Gilead Sciences, Inc., each with a 5 5/7% weight
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| Amount: | $1,198,000
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| Maturity: | Aug. 12, 2015
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| Coupon: | 0%
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| Price: | Par of $1,000
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| Payout at maturity: | Par plus basket return multiplied by an adjustment factor of 99.95%; exposure to losses if basket return is less than about 0.25063%
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| Initial prices: | $30.19 for Pfizer, $58.15 for Merck, $50.97 for Sanofi, $49.39 for Bristol-Myers, $73.29 for Walgreen, $63.78 for Eli Lilly, $51.74 for Mylan, $154.99 for Perrigo, $32.82 for Zoetis, $335.45 for Biogen, $87.16 for Celgene, $123.52 for Valeant, $171.03 for Illumina, $68.53 for Endo, $27.87 for Impax, $89.84 for Gilead
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| Final stock price: | Average of closing prices on five averaging days ending Aug. 7, 2015
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| Pricing date: | July 25
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| Settlement date: | July 30
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| Underwriter: | Barclays with J.P. Morgan Securities LLC and JPMorgan Chase Bank, NA
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| Fees: | 0.75%
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| Cusip: | 06741UGL2
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