Barclays Bank Delaware plans three-year CDs linked to Russell 2000

By Jennifer Chiou

New York, July 1 - Barclays Bank Delaware plans to price certificates of deposit due July 23, 2013 linked to the Russell 2000 index, according to a term sheet.

A knock-out event will occur if the index exceeds the barrier range in any of the three observation periods. In the first period, the knock-out range is 110% to 120% of the initial level. It rises to 115% to 125% for the second period and 125% to 135% for the third period. The exact terms will be set at pricing.

If a knock-out event has not occurred, investors will receive a coupon equal to the index return, with a floor of par.

If a knock-out event has occurred, no coupon will be paid for that period.

Interest will be payable annually.

The payout at maturity will be par.

There is a survivor put.

The CDs (Cusip: 06740ALF4) will price on July 23 and settle on July 30.

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

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