Published on 5/21/2010 in the Prospect News Structured Products Daily.
New Issue: Barclays prices $4 million 11.5% One Look Callable Reverse Convertibles linked to Valero
By Angela McDaniels
Tacoma, Wash., May 21 - Barclays Bank plc priced $4 million of 11.5% One Look Callable Reverse Convertible Notes due May 24, 2011 linked to the common stock of Valero Energy Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
The notes will be automatically called at par if Valero stock closes at or above the initial share price on Aug. 20, 2010, Nov. 22, 2010 or Feb. 22, 2011.
If the notes are not called, the payout at maturity will be par unless the final share price of Valero stock is less than 70% of the initial price, in which case investors will receive a number of Valero shares equal to $1,000 divided by the initial price or, at Barclays' option, a cash amount equal to par minus the share price decline.
Barclays Capital Inc. is the agent.
Issuer: | Barclays Bank plc
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Issue: | One Look Callable Reverse Convertible Notes
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Underlying stock: | Valero Energy Corp. (Symbol: VLO)
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Amount: | $4 million
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Maturity: | May 24, 2011
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Coupon: | 11.5%, payable monthly
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Price: | Par
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Payout at maturity: | If final share price is less than protection price, 55.928412 Valero shares or cash amount equal to par minus share price decline; otherwise, par
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Call: | Automatically at par if Valero stock closes at or above initial share price on Aug. 20, 2010, Nov. 22, 2010 or Feb. 22, 2011
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Initial share price: | $17.88
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Protection price: | $12.52, 70% of initial price
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Pricing date: | May 20
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Settlement date: | May 25
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Agent: | Barclays Capital Inc.
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Fees: | 2.75%
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Cusip: | 06740LN92
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