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

By Angela McDaniels

Tacoma, Wash., May 26 – Barclays Bank plc plans to price callable high/low coupon notes due May 31, 2019 linked to the least performing of the Financial Select Sector SPDR fund, the Materials Select Sector SPDR fund and the Consumer Staples Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.

A knock-in event will occur if any fund closes below its barrier price, 65% of its initial share price, on any day during the life of the notes.

The notes will pay a coupon each quarter. If a knock-in event has not occurred, the coupon for that quarter is expected to be 8.75% to 9.75% per year. If a knock-in event occurs, the coupon for that and each subsequent quarter will be 1% per year. The exact high coupon amount will be set at pricing.

Beginning November 2017, the notes are callable at par on any coupon payment date.

If the notes are not called, the payout at maturity will be par unless a knock-in event occurs and any fund finishes below its initial share price, in which case investors will be exposed to the decline of the least-performing fund.

Barclays is the agent.

The notes will price May 30.

The Cusip number is 06741VWP3.

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