Barclays plans to price 13% callable reverse convertibles linked to basket of exchange-traded funds

By E. Janene Geiss

Philadelphia, Feb. 10 - Barclays Bank plc plans to price callable reverse convertible notes due Aug. 27, 2009 linked to a basket of exchange-traded funds, according to a 424B2 filing with the Securities and Exchange Commission.

The basket consists of equal weights of the iShares MSCI EAFE Index Fund, iShares MSCI Emerging Markets Index Fund, Financial Select Sector SPDR Fund and the Energy Select Sector SPDR Fund.

The six-month notes pay 6.5% for an annualized coupon of 13%. Interest is payable monthly.

The payout at maturity will be par unless the basket's shares fall by more than 25% during the life of the notes and finish below the initial price, in which case investors will receive a number of fund shares equal to $1,000 divided by the initial price or, at Barclays' option, par minus the share price decline.

The notes are expected to price on Feb. 24 and settle on Feb. 27.

Barclays Capital Inc. is the agent.

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