By Toni Weeks
San Luis Obispo, Calif., June 3 - Barclays Bank plc priced $32.31 million of 8.5% STEP Income Securities due June 16, 2014 linked to the performance of Valero Energy Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable quarterly.
If the price of Valero shares finishes at or above the step level - 108.5% of the initial price - the payout at maturity will be par of $10 plus 3.87%.
If the stock finishes at or above 95% of the initial value but below the step level, the payout will be par.
Investors will be exposed to losses beyond the 5% buffer.
BofA Merrill Lynch is the agent.
| Issuer: | Barclays Bank plc
|
| Issue: | STEP Income Securities
|
| Underlying stock: | Valero Energy Corp. (NYSE: VLO)
|
| Amount: | $32,311,510
|
| Maturity: | June 16, 2014
|
| Coupon: | 8.5%, payable quarterly
|
| Price: | Par
|
| Payout at maturity: | If Valero shares finish at or above $44.11, par plus $0.387 per $10 note; if shares finish at or above $38.62 but below STEP level, par; exposure to losses beyond 5% buffer
|
| Initial price: | $40.65
|
| STEP level: | $44.11, 108.5% of initial value
|
| Threshold value: | $38.62, 95% of initial value
|
| Pricing date: | May 30
|
| Settlement date: | June 6
|
| Agent: | BofA Merrill Lynch
|
| Fees: | 1.75%
|
| Cusip: | 06742C137
|
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