Pricing Supplement - Fixed Rate Callable Range Accrual
CALCULATION OF REGISTRATION FEE
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Title of Each Class of Securities Offered |
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Maximum Aggregate Offering Price |
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Amount of Registration
Fee(1) |
Global Medium-Term Notes, Series A |
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$250,000 |
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$17.83 |
(1) |
Calculated in accordance with Rule 457(r) of the Securities Act of 1933. |
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Pricing Supplement dated May 6, 2010
(To Prospectus dated February 10, 2009 and
the Prospectus Supplement dated March 1, 2010) |
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Filed Pursuant to Rule 424(b)(2)
Registration No. 333-145845 |
US$250,000
FIXED RATE CALLABLE RANGE ACCRUAL NOTES DUE MAY 21, 2025
Principal Amount: US$250,000 Issuer: Barclays Bank PLC
(Rated AA/Aa3) 1
Issue Price: Variable Price Re-Offer Series: Global Medium-Term Notes, Series A
Principal Protection Percentage: 100% Original Issue Date: May 21, 2010
Original Trade Date: May 6, 2010 Maturity Date: May 21, 20252, subject to Redemption at the Option of the
Company (as set forth below).
CUSIP: 06740LTR6 Denominations: Minimum denominations of US$1,000 and integral
multiples of US$1,000 thereafter.
ISIN: US06740LTR68
Business Day: x New York
x London
¨ Euro
¨ Other
( ) Business Day Convention:x Following
¨ Modified Following
¨ Preceding
¨ Adjusted or x Unadjusted
Interest Rate Type (see Interest Rate Formula below): Day Count Convention (or Fraction):
¨ Fixed Rate
¨ Regular Floating Rate
¨ Inverse Floating Rate (see page S-41 of the prospectus supplement for a
description of inverse floating rate Notes)
x Other (see
description in this pricing supplement)¨ Actual/360
x 30/360
¨ Actual/Actual
¨ Actual/365¨ NL/365
¨ 30/365
¨ Actual/366
¨ Actual/252 or Business Days/252
Reference Asset/Reference Rate:
¨ CD Rate
¨ CMS Rate
¨ CMT Rate (Reuters Screen FRBCMT Page)
¨ Commercial Paper Rate
¨ Eleventh District Cost of Funds Rate
¨ Federal Funds (Effective) Rate
¨ Federal Funds (Open) Rate
¨ EURIBOR
x LIBOR
Designated LIBOR Page: Reuters: LIBOR01
¨ Prime Rate
¨ Treasury Rate
¨ Consumer Price Index (the CPI)
Reference Month:
¨ Other (see description in this pricing supplement)
Index Maturity: 6-Month Maximum Interest Rate: For any Interest Period, the Inside Range Rate specified for that Interest
Period under Inside Range Rates and Outside Range Rates below.
Spread: Not Applicable
Multiplier: Not Applicable Minimum Interest Rate: For any Interest Period, the Outside Range Rate specified for that
Interest Period under Inside Range Rates and Outside Range Rates below.
Interest Rate Formula: For
each Interest Period commencing on or after the Original Issue Date, the interest rate per annum will be equal to the sum of:
(a) the product of (1) the applicable Inside Range Rate and (2) the applicable Accrual Factor; and
(b) the product of (1) the applicable Outside Range Rate and (2) one minus the applicable Accrual Factor.
1 For further information regarding the ratings assigned to the Global Medium-Term Notes Program, Series A,
see Program Credit Rating below.
2 At least 366 calendar days after the Original Issue Date.
Accrual Factor: For any Interest Period, the number of calendar days in that Interest Period
on which the value of the Reference Rate observed on that day is within the applicable Rangethat is, above the applicable Lower Barrier and at or below the applicable Upper Barrierdivided by the total number of calendar days in that
Interest Period. Notwithstanding anything else to the contrary, the Reference Rate on any calendar day in an Interest Period that is not a Business Day will equal the Reference Rate observed on the immediately preceding Business Day.
Rate Cut-Off: For any Interest Period, the Reference Rate for any day from and including the fifth Business Day prior
to the related Interest Payment Date will equal the Reference Rate observed on such fifth Business Day prior to that Interest Payment Date.
Inside Range Rates and Outside Range Rates: For Interest Periods commencing on or after: Inside Range Rate
(per annum) Outside Range Rate
(per annum)
The Original Issue Date 7.00% 0.00%
May 21, 2015 8.00% 0.00%
May 21, 2020 10.00% 0.00%
Ranges: For Interest Periods commencing on or after: Lower Barrier Upper Barrier
The Original Issue Date 0.00% 5.00%
May 21, 2015 0.00% 6.00%
May 21, 2020 0.00% 7.00%
Interest Payment Dates:¨
Monthly,x Quarterly,¨ Semi-Annually,¨ Annually,
payable in arrears on 21st of February, May, August and November, commencing on August 21, 2010 and ending on the
Maturity Date or the Early Redemption Date, if applicable.
Interest Period: The initial Interest Period will
begin on, and include, the Original Issue Date and end on, but exclude, the first Interest Payment Date. Each subsequent Interest Period will begin on, and include, the Interest Payment Date for the preceding Interest Period and end on, but exclude,
the next following Interest Payment Date. The final Interest Period will end on, but exclude, the Maturity Date.
Redemption at the Option of the Company: We may redeem your Notes, in whole or in part, at the Redemption Price set forth
below, on any Interest Payment Date commencing on August 21, 2010, provided we give at least 5 business days prior written notice to the trustee. If we exercise our redemption option, the Interest Payment Date on which we so exercise will
be referred to as the Early Redemption Date.
Redemption Price: If we exercise our redemption
option, you will receive on the Early Redemption Date 100% of the principal amount, together with accrued and unpaid interest to but excluding the Early Redemption Date
Settlement: DTC; Book-entry; Transferable.
Listing: The Notes will not be listed on any U.S. securities exchange or quotation system.
Calculation Agent: Barclays Bank PLC
Barclays Capital Inc. has agreed to purchase the Notes from us at 100% of the principal amount minus a commission equal to
$35 per $1,000 principal amount, or 3.50%, resulting in aggregate proceeds to Barclays Bank PLC of $241,250. Barclays Capital Inc. proposes to offer the Notes from time to time for sale in negotiated transactions, or otherwise, at varying prices to
be determined at the time of each sale. Barclays Capital Inc. may also use all or a portion of its commissions on the Notes to pay selling concessions or fees to other dealers.
The Notes will not be listed on any U.S. securities exchange or quotation system. Neither the Securities and Exchange
Commission nor any state securities commission has approved or disapproved of these securities or determined that this pricing supplement is truthful or complete. Any representation to the contrary is a criminal offense.
We may use this pricing supplement in the initial sale of Notes. In addition, Barclays Capital Inc. or another of our
affiliates may use this pricing supplement in market resale transactions in any Notes after their initial sale. Unless we or our agent informs you otherwise in the confirmation of sale, this pricing supplement is being used in a market resale
transaction.
The Notes constitute our direct, unconditional, unsecured and unsubordinated obligations and are not
deposit liabilities of Barclays Bank PLC and are not insured by the U.S. Federal Deposit Insurance Corporation or any other governmental agency of the United States, the United Kingdom or any other jurisdiction.
Investing in the Notes involves a number of risks. See Risk Factors beginning on page S-5 of the prospectus supplement and Selected
Risk Factors below. We urge you to consult your investment, legal, tax, accounting and other advisers and to invest in the Notes only after you and your advisors have carefully considered the suitability of an investment in the Notes in light
of your particular circumstances.
Barclays Bank PLC has filed a registration statement (including a prospectus) with the SEC for the
offering to which this pricing supplement relates. Before you invest, you should read the prospectus dated February 10, 2009, the prospectus supplement dated March 1, 2010, and other documents Barclays Bank PLC has filed with the SEC for
more complete information about Barclays Bank PLC and this offering. Buyers should rely upon this pricing supplement, the prospectus, the prospectus supplement, and any relevant free writing prospectus for complete details. You may get these
documents and other documents Barclays Bank PLC has filed for free by visiting EDGAR on the SEC website at www.sec.gov, and you may also access the prospectus and prospectus supplement through the links below:
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Prospectus dated February 10, 2009: |
http://www.sec.gov/Archives/edgar/data/312070/000119312509023285/dposasr.htm
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Prospectus Supplement dated March 1, 2010: |
http://www.sec.gov/Archives/edgar/data/312070/000119312510043357/d424b3.htm
Our Central Index Key, or CIK, on the SEC website is 1-10257.
Alternatively, Barclays Capital Inc. or any agent or dealer participating in this offering will arrange to send you this pricing supplement, the
prospectus, the prospectus supplement and any related free writing prospectus if you request it by calling your Barclays Capital Inc. sales representative, such dealer or 1-888-227-2275 (Extension 3430). A copy of the prospectus may be obtained from
Barclays Capital Inc., 745 Seventh AvenueAttn: US InvSol Support, New York, NY 10019.
You may revoke your offer to purchase the
Notes at any time prior to the time at which we accept such offer by notifying the applicable agent. We reserve the right to change the terms of, or reject any offer to purchase the Notes prior to their issuance. In the event of any changes to the
terms of the Notes, we will notify you and you will be asked to accept such changes in connection with your purchase. You may also choose to reject such changes in which case we may reject your offer to purchase.
As used in this term sheet, the Company, we, us, or our refers to Barclays Bank PLC.
PROGRAM CREDIT RATING
The Notes are issued under the Global Medium-Term Notes Program, Series A (the Program). The Program is rated AA by
Standard & Poors Rating Services (S&P), and the Notes are expected to carry the same S&P rating as the Program rating. An AA rating from S&P generally indicates that the issuers capacity to meet its
financial commitment on the obligations arising from the Program is very strong. This rating does not take into account market risk or the performance-related risks of the investment (including, without limitation, the risks associated with the
potential negative performance of any reference asset to which the Notes are linked). The Program is also rated Aa3 by Moodys Investor Services, Inc. (Moodys); however, because we have not sought a rating from Moodys
for this specific issuance, the Notes will not be rated by Moodys. The ratings mentioned in this paragraph are subject to downward revision, suspension or withdrawal at any time by the assigning rating organization and are not a recommendation
to buy, sell or hold securities.
SELECTED RISK FACTORS
An investment in the Notes involves significant risks not associated with an investment in conventional floating rate or fixed rate medium term notes.
You should read the risks summarized below in connection with, and the risks summarized below are qualified by reference to, the risks described in more detail in the Risk Factors section beginning on page S-5 of the prospectus
supplement. We urge you to consult your investment, legal, tax, accounting and other advisers and to invest in the Notes only after you and your advisors have carefully considered the suitability of an investment in the Notes in light of your
particular circumstances.
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Reference Rate / Interest Payment RiskInvesting in the Notes is not equivalent to investing in securities directly linked to the Reference
Rate. Instead, the amount of interest payable on the Notes (after any initial Interest Periods for which the Initial Interest Rate is payable) for any Interest Period to which the Interest Rate Formula applies is dependent on whether, and the extent
to which, the Reference Rate is within the applicable Rangeabove the applicable Lower Barrier and at or below the Upper Barrierduring a given Interest Period. For each calendar day in an Interest Period on which the
Reference Rate is within the Range relevant to that Interest Period, the applicable Inside Range Rate will accrue; conversely, for each calendar day in an Interest Period on which the Reference Rate is outside the relevant Range, the Outside Range
Rate will accrue. |
As a result, assuming an Inside Range Rate that is greater than the Outside Range Rate, if
the Reference Rate is outside the applicable Range on one or more calendar days during an Interest Period, then the interest rate for that Interest Period, and the amount of interest paid on the related Interest Payment Date, will decrease in
proportion to the number of calendar days in the Interest Period that the Reference Rate is outside the applicable Range. Accordingly, in such circumstances you would not receive the maximum possible interest rate for that Interest Period. If the
Reference Rate is outside the applicable Range on every calendar day in an Interest Period, then you will receive only the applicable Outside Range Rate for that Interest Period (and if the applicable Outside Range Rate for that Interest Period is
0% per annum, you would receive no interest payment on the related Interest Payment Date). If the Reference Rate is outside the applicable Range on every calendar day in every Interest Period throughout the term of the Notes, then you will receive
only the applicable Outside Range Rate for each Interest Period (and if the applicable Outside Range Rate for each Interest Period is 0% per annum, you would receive no interest payments on your Notes throughout their term).
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Issuer Credit RiskYou will receive at least 100% of the principal amount of your Notes if you hold your Notes to the Maturity Date (or
Early Redemption Date, if applicable), regardless of the performance of the Reference Rate. Because the Notes are our senior unsecured obligations, payment of any interest or any amount at maturity is subject to our ability to pay our obligations as
they become due. |
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Certain Built-In Costs Are Likely to Adversely Affect the Value of the Notes Prior to MaturityAlthough you will not receive less than the
principal amount of the Notes if you hold the Notes to maturity, the Original Issue Price of the Notes includes the agents commission and the cost of hedging our obligations under the Notes through one or more of our affiliates. As a result,
assuming no change in market conditions or any other relevant factor, the price, if any, at which Barclays Capital Inc. and other affiliates of Barclays Bank PLC will be willing to purchase Notes from you in secondary market transactions will likely
be lower than the Original Issue Price, and any sale prior to the Maturity Date could result in a substantial loss to you. |
PS1
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Lack of LiquidityThe Notes will not be listed on any securities exchange. Barclays Capital Inc. and other affiliates of Barclays Bank PLC
intend to make a secondary market for the Notes but are not required to do so, and may discontinue any such secondary market making at any time, without notice. Even if there is a secondary market, it may not provide enough liquidity to allow you to
trade or sell the Notes easily. Because other dealers are not likely to make a secondary market for the Notes, the price at which you may be able to trade your Notes is likely to depend on the price, if any, at which Barclays Capital Inc. and other
affiliates of Barclays Bank PLC are willing to buy the Notes. The Notes are not designed to be short-term trading instruments. Accordingly, you should be able and willing to hold your Notes to maturity. |
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Potential ConflictsWe and our affiliates play a variety of roles in connection with the issuance of the Notes, including acting as
calculation agent and hedging our obligations under the Notes. In performing these duties, the economic interests of the calculation agent and other affiliates of ours are potentially adverse to your interests as an investor in the Notes.
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In addition, Barclays Wealth, the wealth management division of Barclays Capital Inc., may arrange for the
sale of the Notes to certain of its clients. In doing so, Barclays Wealth will be acting as agent for Barclays Bank PLC and may receive compensation from Barclays Bank PLC in the form of discounts and commissions. The role of Barclays Wealth as a
provider of certain services to such customers and as agent for Barclays Bank PLC in connection with the distribution of the Notes to investors may create a potential conflict of interest, which may be adverse to such clients. Barclays Wealth is not
acting as your agent or investment adviser, and is not representing you in any capacity with respect to any purchase of Notes by you. Barclays Wealth is acting solely as agent for Barclays Bank PLC. If you are considering whether to invest in the
Notes through Barclays Wealth, we strongly urge you to seek independent financial and investment advice to assess the merits of such investment.
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Many Economic and Market Factors Will Impact the Value of the NotesIn addition to the level of the Reference Rate on any day, the value of
the Notes will be affected by a number of economic and market factors that may either offset or magnify each other, including: |
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the expected volatility of the Reference Rate; |
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the time to maturity of the Notes; |
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interest and yield rates in the market generally; |
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a variety of economic, financial, political, regulatory or judicial events; and |
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our creditworthiness, including actual or anticipated downgrades in our credit ratings. |
HYPOTHETICAL INTEREST RATE AND INTEREST PAYMENT CALCULATIONS
As described above, after any initial Interest Periods for which the Initial Interest Rate is payable, the Notes will pay interest on each Interest
Payment Date at an effective per annum interest rate calculated in accordance with the Interest Rate Formula. The following illustrates the process by which the interest rate and interest payment amount are determined for any such Interest Periods.
For purposes of these examples, we assume that the Notes are not being redeemed on the applicable Interest Payment Date pursuant to the
Redemption at the Option of the Company provisions above. If we exercise our redemption option, you will receive on the Early Redemption Date the Early Redemption Price applicable to that Early Redemption Date, calculated as described above.
Interest Rate Calculation
Step 1: Calculate the Accrual Factor.
For each calendar day during an Interest Period, a value for the Reference Rate is determined, and that value is then evaluated relative to the Range
applicable to that Interest Period (that is, whether the Reference Rate on that day is above the applicable Lower Barrier and at or below the Upper Barrier). Under the Interest Rate Formula, the amount of interest payable on the Notes
for any Interest Period to which the Interest Rate Formula applies is dependent on the Accrual Factor. The Accrual Factor for any Interest Period is a fraction, where the numerator reflects the number of calendar days in that Interest Period on
which the Reference Rate is within the applicable Range during that Interest Period, and the denominator reflects the total number of calendar days in that Interest Period.
PS2
Step 2: Calculate the annual interest rate for each Interest Payment Date.
For each calendar day in an Interest Period on which the Reference Rate is within the Range relevant to that Interest Period, the applicable
Inside Range Rate will accrue; conversely, for each calendar day in an Interest Period on which the Reference Rate is outside the relevant Range, the Outside Range Rate will accrue.
Stated mathematically, the interest rate per annum for any Interest Period to which the Interest Rate Formula applies will be equal to the sum of:
(a) the product of (1) the applicable Inside Range Rate and (2) the applicable Accrual Factor, and
(b) the product of (1) the applicable Outside Range Rate and (2) one minus the applicable Accrual Factor.
Assuming an Inside Range Rate that is greater than the Outside Range Rate, the maximum possible per annum interest rate for any Interest Period to which
the Interest Rate Formula applies is the Inside Range Rate for that Interest Period, and the actual interest rate per annum for any Interest Period will decrease in proportion to the number of calendar days in the Interest Period that the Reference
Rate is outside the applicable Range, and could potentially be zero. See Selected Risk FactorsReference Rate / Interest Payment Risk.
Step 3: Calculate the interest payment amount payable for each Interest Payment Date.
For each Interest Period, once the Calculation Agent has determined the applicable interest rate per annum, the Calculation Agent will calculate the
effective interest rate for the Interest Period by multiplying the annual interest rate determined for that Interest Period by the applicable day count fraction. The resulting effective interest rate is then multiplied by the relevant principal
amount of the Notes to determine the actual interest amount payable on the related Interest Payment Date. No adjustments to the amount of interest calculated will be made in the event an Interest Payment Date is not a Business Day.
Example Interest Rate and Interest Payment Calculations
The following examples illustrate how the per annum interest rate and interest payment amounts would be calculated for a given Interest Period to which
the Interest Rate Formula applies under different Accrual Factor scenarios. For purposes of these examples, we have assumed that the Inside Range Rate for the Interest Period is 7.00% and the Outside Range Rate is 0.00%. We have further assumed that
the Notes have quarterly Interest Payment Dates, and that interest payments will be calculated using a 30/360 day count basis (such that the applicable day count fraction for the quarterly interest payment for the Interest Period will be 90/360).
These values and assumptions have been chosen arbitrarily for the purpose of these examples, and should not be taken as indicative of the
terms of any particular Notes or the future performance of the Reference Rate. The specific terms for each issuance of Notes will be determined at the time such Notes are priced. Numbers in the table below have been rounded for ease of analysis.
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Inside Range Rate |
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Number of calendar days on which the Reference Rate
was within the Range |
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Accrual Factor |
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Interest Rate
(per annum)1 |
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Effective
Interest Rate2 |
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Interest Payment Amount
(per $1,000 Note)3 |
7.00% |
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90 |
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100.00% |
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7.00% |
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1.750% |
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$17.50 |
7.00% |
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60 |
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66.67% |
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4.67% |
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1.167% |
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$11.67 |
7.00% |
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30 |
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33.33% |
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2.33% |
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0.583% |
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$5.83 |
7.00% |
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0 |
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0.00% |
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0.00% |
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0.000% |
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$0.00 |
1. |
The interest rate per annum is equal to the sum of (a) the product of (1) the applicable Inside Range Rate and (2) the applicable Accrual Factor, and (b) the product of
(1) the applicable Outside Range Rate and (2) one minus the applicable Accrual Factor. For purposes of these examples, the Outside Interest Rate is equal to 0.00%. As a result, the interest rate per annum is simply equal to the Inside Range Rate
times the Accrual Factor, and no interest will accrue for any days during the Interest Period on which the Reference Rate was outside the Range. |
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Effective interest rate equals the interest rate per annum multiplied by the day count fraction (90/360). |
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Interest payment amount equals the principal amount times the effective interest rate. |
Example 1: If the value of the Reference Rate is within the applicable Range on every calendar day in the relevant Interest Period, the
related Accrual Factor would equal 100%, or 1.0. In this case, the Inside Range Rate of 7.00% would accrue for every day in the Interest Period. As a result, the per annum interest rate for that Interest Period would be equal
PS3
to the Inside Range Rate of 7.00%, the maximum per annum interest rate for that Interest Period, and you would receive an interest payment of $17.50 per $1,000 principal amount of Notes on the
related quarterly Interest Payment Date, calculated as follows:
Effective Interest Rate = 7.00% × (90/360) =
1.75%
Interest Payment = $1,000 × 1.75% = $17.50
Example 2: If the value of the Reference Rate is outside the applicable Range on every calendar day in the relevant Interest Period, the
related Accrual Factor would equal 0%, or 0.0. In this case, the Outside Range Rate of 0.00% would accrue for every day in the Interest Period. As a result, the per annum interest rate for that Interest Period would be equal to 0.00%, and you would
receive no interest payment on the related quarterly Interest Payment Date (the interest payment would be $0).
Example 3: If
the value of the Reference Rate is within the applicable Range on 33.33% of the calendar days in the relevant Interest Period, but outside the Range on the other 66.67% of the relevant calendar days, the related Accrual Factor would equal 33.33%, or
0.3333. In this case, the Inside Range Rate of 7.00% would accrue for 33.33% of the days in that Interest Period, while the Outside Range Rate of 0.00% would accrue for the remaining 66.67% of the days in that Interest Period. As a result, the per
annum interest rate for that Interest Period would be 2.33%, calculated in accordance with the Interest Rate Formula as follows:
Per Annum Interest Rate = (7.00% × 0.3333) + (0.00% × [1 0.3333]) = 2.33%
Based on the per annum interest rate for the relevant Interest Period determined per the above, you would receive an interest payment of $5.83 per $1,000
principal amount of Notes on the related quarterly Interest Payment Date, calculated as follows:
Effective Interest Rate
= 2.33% × (90/360) = 0.583%
Interest Payment = $1,000 × 0.583% = $5.83
UNITED STATES FEDERAL INCOME TAX TREATMENT
The following discussion (in conjunction with the discussion in the prospectus supplement) summarizes certain of the material U.S. federal income tax
consequences of the purchase, beneficial ownership, and disposition of Notes. This summary supplements the section Certain U.S. Federal Income Tax Considerations in the prospectus supplement and supersedes it to the extent inconsistent
therewith.
We intend to treat the Notes as contingent payment debt instruments subject to taxation as described under the heading
Certain U.S. Federal Income Tax ConsiderationsU.S. Federal Income Tax Treatment of the Notes as Indebtedness for U.S. Federal Income Tax PurposesContingent Payment Debt Instruments in the prospectus supplement. Pursuant to
the terms of the Notes, you agree to treat the Notes consistent with our treatment for all U.S. federal income tax purposes. As a result, you may be required to include original issue discount (OID) in income during your ownership of the
Notes in excess of any cash payments made with respect to the Notes in such taxable year. Additionally, you will generally be required to recognize ordinary income on the gain, if any, realized on a sale, upon maturity, or other disposition of the
Notes. Pursuant to the terms of the Notes, you agree to treat the Notes consistent with our treatment for all U.S. federal income tax purposes.
Because there are no statutory provisions, regulations, published rulings or judicial decisions addressing the characterization for U.S. federal income
tax purposes of securities with terms that are substantially the same as those of the Notes, other characterizations and treatments are possible. As a result, the timing and character of income in respect of the Notes might differ from the treatment
described above. For example, it is possible that the Notes could be treated as variable rate debt instruments that are issued with OID for federal income tax purposes. In this case, you could be required to report income in certain
years in excess of the interest received on the Notes.
3.8% Medicare Tax On Net Investment Income
Beginning in 2013, U.S. holders that are individuals, estates, and certain trusts will be subject to an additional 3.8% tax on all or a portion of their
net investment income, which may include the interest payments and any gain realized with respect to the Notes, to the extent of their net investment income that when added to their other modified adjusted gross income, exceeds $200,000
for an unmarried individual, $250,000 for a married taxpayer filing a joint return (or a surviving spouse), or $125,000 for a married individual filing a separate return. U.S. holders should consult their advisors with respect to their consequences
with respect to the 3.8% Medicare tax.
PS4
Specified Foreign Financial Assets
U.S. holders that are individuals (and, to the extent provided in future regulations, entities) may be subject to reporting obligations applicable to
certain foreign financial assets with respect to their Notes if the aggregate value of their Notes and their other specified foreign financial assets exceeds $50,000. Significant penalties can apply if a U.S. holder fails to disclose its
specified foreign financial assets. This information reporting requirement is generally applicable for taxable years beginning after March 18, 2010. We urge you to consult your tax advisor with respect to this and other reporting obligations
with respect to your Notes.
PROSPECTIVE PURCHASERS SHOULD CONSULT THEIR TAX ADVISORS AS TO THE FEDERAL, STATE, LOCAL, AND OTHER TAX
CONSEQUENCES TO THEM OF THE PURCHASE, OWNERSHIP AND DISPOSITION OF NOTES.
CERTAIN EMPLOYEE RETIREMENT INCOME SECURITY ACT
CONSIDERATIONS
Your purchase of a Note in an Individual Retirement Account (an IRA), will be deemed to be a representation
and warranty by you, as a fiduciary of the IRA and also on behalf of the IRA, that (i) neither the issuer, the placement agent nor any of their respective affiliates has or exercises any discretionary authority or control or acts in a fiduciary
capacity with respect to the IRA assets used to purchase the Note or renders investment advice (within the meaning of Section 3(21)(A)(ii) of the Employee Retirement Income Security Act (ERISA)) with respect to any such IRA assets
and (ii) in connection with the purchase of the Note, the IRA will pay no more than adequate consideration (within the meaning of Section 408(b)(17) of ERISA) and in connection with any redemption of the Note pursuant to its
terms will receive at least adequate consideration, and, in making the foregoing representations and warranties, you have (x) applied sound business principles in determining whether fair market value will be paid, and (y) made such
determination acting in good faith.
For additional ERISA considerations, see Employee Retirement Income Security Act in the
prospectus supplement.
SUPPLEMENTAL PLAN OF DISTRIBUTION
We will agree to sell to Barclays Capital Inc. (the Agent), and the Agent will agree to purchase from us, the principal amount of the
Notes, and at the price, specified on the cover of this pricing supplement. The Agent will commit to take and pay for all of the Notes, if any are taken.
Delivery of the Notes of a particular series may be made against payment for the Notes more than three business days following the pricing date for those
Notes (that is, a particular series of Notes may have a settlement cycle that is longer than T+3). For considerations relating to an offering of Notes with a settlement cycle longer than T+3, see Plan of Distribution in the
prospectus supplement.
PS5
US$250,000
BARCLAYS BANK PLC
FIXED RATE CALLABLE RANGE ACCRUAL NOTES DUE MAY 21, 2025
GLOBAL MEDIUM-TERM NOTES, SERIES A
(TO PROSPECTUS DATED FEBRUARY 10, 2009, AND THE
PROSPECTUS SUPPLEMENT DATED MARCH 1, 2010)