Published on 2/26/2007 in the Prospect News Structured Products Daily.
New Issue: Barclays prices $1 million 12.5% notes linked to Nortel
New York, Feb. 26 - Barclays Bank plc priced a $1 million offering of reverse convertible notes due Aug. 28, 2007 linked to the common stock of Nortel Networks Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The six-month notes will pay interest monthly at an annualized rate of 12.5%.
The payout at maturity will be par unless Nortel stock falls below the protection price of $25.14 during the life of the notes and finishes below the initial share price of $31.42, in which case the payout will be a number of Nortel shares equal to $1,000 divided by the initial share price or the cash equivalent.
Issuer: | Barclays Bank plc
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Issue: | Reverse convertible notes
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Underlying stock: | Nortel Networks Corp.
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Amount: | $1 million
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Maturity: | Aug. 28, 2007
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Coupon: | 12.5%, payable monthly
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Price: | Par
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Payout at maturity: | Par if Nortel remains at or above the protection price of $25.14 during the life of the notes and finishes at or above the initial share price; otherwise, 31.826862 Nortel shares or the cash equivalent
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Initial share price: | $31.42
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Protection price: | $25.14, 80% of initial share price
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Pricing date: | Feb. 23
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Settlement date: | Feb. 28
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Agent: | Barclays Capital Inc.
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Agent fees: | 2%
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