Published on 7/24/2012 in the Prospect News Structured Products Daily.
New Issue: Barclays prices $3.35 million contingent income autocallables linked to Whole Foods
By Angela McDaniels
Tacoma, Wash., July 24 - Barclays Bank plc priced $3.35 million of contingent income autocallable securities due July 27, 2015 with step-down redemption threshold level feature linked to the common stock of Whole Foods Market, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
If Whole Foods stock closes at or above the downside threshold level - 75% of the initial share price - on a quarterly determination date, investors will receive a contingent payment of $0.25 for each $10.00 note. Otherwise, no contingent payment will be made for that quarter.
If the closing share price is greater than or equal to the redemption threshold level on any of the first 11 quarterly determination dates, the notes will be automatically redeemed at par plus the contingent payment. The redemption threshold level is 95% of the initial share price on determination dates one through four, 90% of the initial share price on determination dates five through eight and 85% of the initial share price on determination dates nine through 11.
If the notes are not called and the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the contingent payment. If the final share price is less than the downside threshold level, the payout will be a number of Whole Foods shares equal to $10.00 divided by the initial share price or, at the issuer's option, a cash amount equal to the value of those shares.
Barclays Capital Inc. is the agent with Morgan Stanley Smith Barney as dealer.
Issuer: | Barclays Bank plc
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Issue: | Contingent income autocallable securities with step-down redemption threshold level feature
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Underlying stock: | Whole Foods Market Inc. (Nasdaq: WFM)
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Amount: | $3,354,400
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Maturity: | July 27, 2015
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Contingent payment: | $0.25 per note payable quarterly if Whole Foods stock closes at or above downside threshold level on relevant quarterly determination date; otherwise, no contingent payment will be made for that period
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Price: | Par of $10.00
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Payout at maturity: | If final share price is greater than or equal to downside threshold level, par plus $0.25; otherwise, 0.119076 Whole Foods shares or, at issuer's option, cash amount equal to value of those shares
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Call: | Automatically at par plus $0.25 if closing share price is greater than or equal to redemption threshold level on any of first 11 quarterly determination dates
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Initial share price: | $83.98
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Downside threshold: | $62.99, 75% of initial share price
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Redemption threshold: | $79.78, or 95% of initial share price, on determination dates one through four; $75.58, or 90% of initial share price, on determination dates five through eight; $71.38, or 85% of initial share price, on determination dates nine through 11
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Pricing date: | July 20
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Settlement date: | July 25
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Agent: | Barclays Capital Inc.
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Dealer: | Morgan Stanley Smith Barney LLC
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Fees: | 2.25%
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Cusip: | 06738G282
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