Barclays Bank plans CDs with 0.5% minimum coupon linked to 10 stocks

By Angela McDaniels

Tacoma, Wash., Sept. 7 - Barclays Bank Delaware plans to price certificates of deposit due Sept. 27, 2019 linked to a basket of common stocks, according to a term sheet.

The equally weighted basket includes Apple Inc., Darden Restaurants, Inc., Eli Lilly & Co., Freeport-McMoRan Copper & Gold Inc., Hewlett-Packard Co., New York Community Bancorp Inc., Northeast Utilities, Inc., Silver Wheaton Corp., Southern Copper Corp. and Walgreen Co.

The CDs will pay a coupon each year equal to the average of the performances of the stocks, subject to a minimum coupon that is expected to be 0.5%. If a stock's return is zero or positive, its performance will be equal to the return cap, which is expected to be 4% to 6%. If a stock's return is negative, its performance will be the greater of the stock return and negative 25%.

The exact minimum coupon and return cap will be set at pricing.

The payout at maturity will be par.

The CDs will price Sept. 24 and settle Sept. 28.

Barclays is the agent. Advisors Asset Management, Inc. is the distributor.

The Cusip number is 06740AWV6.

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