By Wendy Van Sickle
Columbus, Ohio, May 3 – Barclays Bank plc priced $8.12 million of contingent income autocallable securities due May 1, 2020 linked to Microsoft Corp. stock, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 8.75% if the stock closes at or above the downside threshold level, 80% of the initial share price, on a determination date for that quarter.
The notes will be called at par of $10 plus the contingent coupon if the shares close at or above the redemption level on any determination date other than the final date.
The redemption level will be 105% of the initial level for the first four redemption dates, stepping up to 110% of the initial level for the next four redemption dates and to 115% of the initial level for the final redemption dates.
The payout at maturity will be par unless the stock finishes below its 80% downside threshold, in which case investors will be fully exposed to any losses.
Barclays is the agent. Morgan Stanley Smith Barney LLC is handling distribution.
Issuer: | Barclays Bank plc
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Issue: | Contingent income autocallable securities
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Underlying stock: | Microsoft Corp.
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Amount: | $8,155,740
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Maturity: | May 1, 2020
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Coupon: | 8.75% per year, payable quarterly if Microsoft shares close at or above downside threshold level on determination date for that quarter
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Price: | Par of $10.00
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Payout at maturity: | If stock finishes at or above downside threshold, par; otherwise, full exposure to any losses
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Call: | At par plus contingent coupon if shares close at or above redemption level on any determination date other than the final date
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Call levels: | 105% of initial level for first four redemption dates, 110% of initial level for next four redemption dates and 115% of initial level for final redemption dates
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Initial share price: | $68.46
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Downside threshold: | $54.768, 80% of initial share price
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Pricing date: | April 28
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Settlement date: | May 3
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Agent: | Barclays
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Dealer: | Morgan Stanley Smith Barney LLC
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Fees: | 2.5%
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Cusip: | 06746J534
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