Barclays plans buffered participation reverse convertibles on Alcoa

By Jennifer Chiou

New York, Jan. 8 - Barclays Bank plc plans to price 0% buffered participation reverse convertible notes due Feb. 28, 2011 linked to the common stock of Alcoa Inc., according to an FWP with the Securities and Exchange Commission.

If the final share price is greater than the initial share price, the payout at maturity will be par plus 200% of the share price gain plus a supplemental return of 2%. The payout is subject to a to-be-determined cap equal to 123.2% to 130% of par.

If the share price declines by 10% or less, the payout will be par plus the supplemental return.

If the share price declines by more than 10%, the payout will be par minus 1% for every 1% that the share price declines beyond 10%. At Barclay's option, it can instead issue a number a Alcoa shares that, when multiplied by the final share price, would be equal to this amount. In either case, investors will also receive the supplemental return in cash.

The notes will price on Jan. 26 and settle on Jan. 29.

Barclays Capital Inc. is the agent.

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