Barclays plans callable high/low coupon notes linked to three ETFs

By Marisa Wong

Morgantown, W.Va., Nov. 16 – Barclays Bank plc plans to price callable high/low coupon notes due Nov. 21, 2018 linked to the lowest performing of three exchange-traded funds, according to a 424B2 filing with the Securities and Exchange Commission.

The underlying ETFs are the Financial Select Sector SPDR fund, the Materials Select Sector SPDR fund and the Consumer Staples Select Sector SPDR fund.

A knock-in event occurs if any underlying fund closes below its knock-in barrier price, 60% of its initial share price, on any day during the life of the notes.

Each quarter, the notes will pay a coupon at the rate of 10.5% to 11.25% per year if a knock-in event does not occur during that quarter and has not occurred during any previous quarter. If a knock-in event occurs during the observation period, the coupon for that interest period and each subsequent interest period will be 1% per year.

The notes are callable on any coupon payment date beginning May 2017.

If the notes are not called, the payout at maturity will be par unless a knock-in event has occurred and the final price of the lowest-performing fund is less than its initial price, in which case investors will be fully exposed to the decline of the lowest-performing fund.

Barclays is the agent.

The notes will price on Nov. 17.

The Cusip number is 06741VEE8.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.