New Issue: Barclays prices $2 billion 8% fixed-rate reset perpetual contingent convertibles

By Marisa Wong and Cristal Cody

Los Angeles, Aug. 2 – Barclays plc priced $2 billion of 8% fixed-rate resetting perpetual subordinated contingent convertible securities (expected: Ba2/B+/BBB-) at par on Monday, according to an FWP filing with the Securities and Exchange Commission.

Initial price talk had been in the 8.5% area, according to a market source.

The interest rate is initially 8% and resets on Sept. 15, 2029 and every five years after that to Treasuries plus 543.1 basis points.

If a capital adequacy trigger event occurs, the securities will automatically convert into shares at a price of $2.02 per share.

The securities are callable in whole beginning on March 15, 2029 until and including the first reset date and on any subsequent reset date.

Barclays is the bookrunner.

BNP Paribas Securities Corp., Citigroup Global Markets Inc., Commerz Markets LLC, ING Financial Markets LLC, J.P. Morgan Securities LLC, Natixis Securities Americas LLC, Santander Investment Securities Inc., SMBC Nikko Securities America, Inc., TD Securities (USA) LLC, UBS Securities LLC and UniCredit Capital Markets LLC are the joint lead managers.

Barclays is a London-based multinational investment bank and financial services company.

Issuer:	Barclays plc
Amount:	$2 billion
Issue:	Subordinated contingent convertible securities
Maturity:	Perpetual
Bookrunner:	Barclays
Joint lead managers:	BNP Paribas Securities Corp., Citigroup Global Markets Inc., Commerz Markets LLC, ING Financial Markets LLC, J.P. Morgan Securities LLC, Natixis Securities Americas LLC, Santander Investment Securities Inc., SMBC Nikko Securities America, Inc., TD Securities (USA) LLC, UBS Securities LLC and UniCredit Capital Markets LLC
Senior co-managers:	BBVA Securities Inc., BMO Capital Markets Corp., CIBC World Markets Corp., Danske Markets Inc., Deutsche Bank Securities Inc., Lloyds Securities Inc., Mizuho Securities USA LLC, nabSecurities, LLC, Nordea Bank ABP and SG Americas Securities, LLC
Co-managers:	Academy Securities, Inc., AmeriVet Securities, Inc., Bancroft Capital, LLC, Blaylock Van, LLC, Citizens Capital Markets, Inc., C.L. King & Associates, Inc., Great Pacific Securities, Loop Capital Markets LLC, Mischler Financial Group, Inc., PNC Capital Markets LLC, QNB Capital LLC, Roberts and Ryan Investments Inc., R. Seelaus & Co., LLC, Samuel A. Ramirez & Co., Inc., Stern Brothers & Co., Telsey Advisory Group LLC and U.S. Bancorp Investments, Inc.
Trustee:	Bank of New York Mellon, London Branch
Coupon:	8% initially, resets on Sept. 15, 2029 and every five years after that to Treasuries plus 543.1 bps
Price:	Par
Yield:	8.078%
Conversion price:	$2.02 per share
Call option:	In whole beginning on March 15, 2029 until and including the first reset date and on any subsequent reset date; in whole due to change in U.K. regulatory capital requirements; in whole due to tax event
Trade date:	Aug. 1
Settlement date:	Aug. 8
Expected ratings:	Moody’s: Ba2
	S&P: B+
	Fitch: BBB-
Distribution:	SEC registered
Initial price talk:	8.5% area
Cusip:	06738EBX2

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