Barclays to price 16% Callable One Observation Reverse Convertibles linked to United States Steel

By Angela McDaniels

Tacoma, Wash., June 18 - Barclays Bank plc plans to price Callable One Observation Reverse Convertible Notes due Dec. 30, 2009 linked to the common stock of United States Steel Corp., according to an FWP filing with the Securities and Exchange Commission.

The six-month notes will pay 8% for an annualized coupon of 16%. Interest will be payable monthly.

If United States Steel stock closes at or above the initial share price on Sept. 25, 2009, the notes will be automatically called at par.

If the notes are not called, the payout at maturity will be par unless the stock closes below the protection price - 65% of the initial share price - on Dec. 24, 2009, in which case investors will receive a number of United States Steel shares equal to $1,000 divided by the initial price or, at Barclays' option, par minus the share price decline.

The notes will price June 25 and settle June 30.

Barclays Capital Inc. is the agent.

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