Published on 7/16/2014 in the Prospect News Structured Products Daily.
New Issue: Barclays prices $1.15 million callable contingent coupon notes linked to Valero Energy
By Susanna Moon
Chicago, July 16 – Barclays Bank plc priced $1.15 million callable contingent coupon notes due Jan. 20, 2016 linked to Valero Energy Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 11% if Valero Energy shares close at or above the 73% barrier level on the observation date for that quarter.
The notes are callable on any coupon payment date at par.
The payout at maturity will be par unless the stock finishes below the 73% knock-in barrier level, in which case investors will receive a number of Valero Energy shares equal to $1,000 divided by the initial share price or, at Barclays’ option, the cash equivalent.
Barclays is the agent.
Issuer: | Barclays Bank plc
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Issue: | Callable contingent coupon notes
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Underlying stock: | Valero Energy Corp. (Symbol: VLO)
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Amount: | $1,152,000
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Maturity: | Jan. 20, 2016
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Coupon: | 11% per year, payable quarterly if Valero Energy shares close at or above barrier price on valuation date for that quarter
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Price: | Par
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Payout at maturity: | Par if stock finishes at or above barrier level; otherwise, full exposure to any losses or, at Barclays’ option, 20.02804 Valero Energy shares
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Call option: | At par plus contingent coupon, if any, on any interest payment date
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Initial share price: | $49.93
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Barrier level: | $36.45, 73% of initial share price
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Pricing date: | July 14
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Settlement date: | July 17
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Agent: | Barclays
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Fees: | 1.25%
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Cusip: | 06741JU49
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