By Wendy Van Sickle
Columbus, Ohio, Oct. 25 – Barclays Bank plc priced $2.83 million of contingent income autocallable securities with step-up redemption threshold level feature due Oct. 24, 2019 linked to the common stock of Microsoft Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 9.25% if the stock closes at or above its downside threshold level, 80% of the initial level, on the determination date for that quarter.
The notes will be called at par plus the contingent coupon if the stock closes at or above its redemption threshold level on any determination date other than the final date. The redemption threshold is 105% for the four determination dates in 2017, stepping up to 110% for the four determination dates in 2018 and to 115% for the three determination dates in 2019.
The payout at maturity will be par unless Microsoft shares finish below the 80% downside threshold level, in which case investors will lose 1% for each 1% decline.
Barclays is the agent with Morgan Stanley Wealth Management as dealer.
| Issuer: | Barclays Bank plc
|
| Issue: | Contingent income autocallable securities with step-up redemption threshold level
|
| Underlying stock: | Microsoft Corp.
|
| Amount: | $2,830,170
|
| Maturity: | Oct. 24, 2019
|
| Coupon: | 9.25% per year, payable quarterly if stock close at or above downside threshold level on determination date for that quarter
|
| Price: | Par of $10.00
|
| Payout at maturity: | Par plus contingent coupon if shares finish at or above downside threshold level; otherwise, full exposure to stock decline
|
| Call: | At par plus contingent payment if shares close at or above redemption threshold on any determination date other than final date
|
| Initial price: | $59.66
|
| Redemption threshold: | $62.64, 105% for four determination dates in 2017; $65.63, 110% for four determination dates in 2018; $68.61, 115% for three determination dates in 2019
|
| Downside threshold: | $47.728, 80% of initial price
|
| Pricing date: | Oct. 21
|
| Settlement date: | Oct. 26
|
| Agent: | Barclays
|
| Dealer: | Morgan Stanley Wealth Management
|
| Fees: | 2.5%
|
| Cusip: | 06745R602
|
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