Barclays plans 10-year step-up callable notes tied to two indexes

By Jennifer Chiou

New York, March 4 – Barclays Bank plc plans to price step-up callable notes due March 31, 2025 linked to the worst performing of the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.

These securities have both a fixed coupon and a contingent-coupon component.

The notes will pay a fixed coupon of 2.25% on each of these payment dates: June 30, 2015, September 30, 2015, December 31, 2015 and March 31, 2016.

If the closing level of each index is at or above its coupon barrier level, 75% of the initial level, the contingent quarterly payment will be 2.25% from June 2016 to March 2018, stepping up to 2.75% until March 2023 and to 3.25% after March 2023.

Beginning on March 31, 2016, the notes may be called at par plus the contingent payment, if any.

If the notes are not called, in addition to the final contingent coupon, if any, the payout at maturity will be par plus the index performance factor of the worst-performing index.

If the worst-performing index finishes above the 50% threshold level, investors will par.

If, however, the worst-performing index finishes below the 50% threshold level, investors will be exposed to any losses.

The notes (Cusip: 06741USB1) will price on March 26 and settle on March 31.

Barclays is the agent.

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