Barclays to price 8.5% callable reverse convertibles linked to Valero

By Toni Weeks

San Luis Obispo, Calif., May 6 - Barclays Bank plc plans to price 8.5% single observation callable reverse convertible notes due May 14, 2014 linked to Valero Energy Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.

Interest will be payable monthly.

The notes will be called at par if the shares close at or above the initial share price on any of three quarterly call valuation dates, which are Aug. 8, Nov. 7, 2013 and Feb. 10, 2014.

If the notes are not called, the payout at maturity will be par in cash unless Valero shares fall below the protection price, 70% of the initial price, on the May 9, 2014 final valuation date, in which case the payout will be a number of Valero shares equal to $1,000 principal amount divided by the initial price or, at the issuer's option, the cash value of those shares.

The notes (Cusip: 06741JZS1) are expected to price May 10 and settle May 15.

Barclays is the agent.

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