By Toni Weeks
San Diego, July 26 - Barclays Bank plc priced $2.67 million of trigger phoenix autocallable optimization securities due July 26, 2012 linked to the common stock of Sprint Nextel Corp., according to a 424B2 filing with the Securities and Exchange Commission.
If the price of Sprint Nextel stock closes at or above the trigger price - 70% of the initial share price - on any of four quarterly observation dates, the issuer will pay a contingent coupon of 15.56% per year. Otherwise, no coupon will be paid for that quarter.
If the share price is greater than or equal to the initial price on any of the observation dates, the notes will be called at par of $10 plus the contingent coupon.
If the notes are not called and the Sprint Nextel share price finishes at or above the trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to any share price decline.
Barclays Capital Inc. and UBS Financial Services Inc. are the agents.
| Issuer: | Barclays Bank plc
|
| Issue: | Trigger phoenix autocallable optimization securities
|
| Underlying stock: | Sprint Nextel Electric Co. (NYSE: S)
|
| Amount: | $2,672,600
|
| Maturity: | July 26, 2012
|
| Coupon: | 15.56% per year, payable quarterly, if stock closes at or above trigger price on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If notes are not called and shares finish at or above trigger price, par plus contingent coupon; otherwise, full exposure to decline in share price
|
| Initial price: | $5.16
|
| Trigger price: | $3.61, 70% of initial price
|
| Call option: | At par plus contingent coupon if share price is at or above initial price on any quarterly observation date
|
| Pricing date: | July 22
|
| Settlement date: | July 27
|
| Agents: | Barclays Capital Inc. and UBS Financial Services Inc.
|
| Fees: | 1.5%
|
| Cusip: | 06738G639
|
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