Barclays to price notes with variable coupon linked to 10 stocks

By Angela McDaniels

Tacoma, Wash., Oct. 6 - Barclays Bank plc plans to price notes due Oct. 20, 2015 linked to a basket of common stocks, according a 424B2 filing with the Securities and Exchange Commission.

The basket includes equal weights of Alpha Natural Resources, Inc., Berkshire Hathaway Inc. (class B), Eli Lilly and Co., Freeport-McMoRan Copper & Gold Inc., Intel Corp., Nvidia Corp., Marriott International, Inc., Netflix, Inc., Verizon Communications Inc. and Wynn Resorts, Ltd.

The notes will pay a coupon each year equal to the greater of (a) the average of the stock performances on the applicable coupon observation date and (b) zero.

If a stock's return is greater than or equal to zero, its performance will be equal to the return cap, which is expected to be 7% to 8.5% and will be set at pricing. Otherwise, its performance will be the greater of the stock return and negative 30%.

The payout at maturity will be par plus the final coupon payment, if any.

The notes (Cusip: 06738KWZ0) are expected to price Oct. 17 and settle Oct. 20.

Barclays Capital Inc. is the agent.

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