Barclays Bank PLC announced today the quarterly coupon amount for the
iPath® S&P MLP ETNs (ticker: IMLP) (the “ETNs”).
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Ticker
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Coupon Valuation Date
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Coupon Record Date
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Coupon Ex Date
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Coupon Payment Date
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Coupon Amount
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Current Yield1
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IMLP
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8/15/2014
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8/28/2014
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8/26/2014
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9/8/2014
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0.3464
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4.03%
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The ETNs are linked to the performance of the consolidated
Volume-Weighted Average Price level of the S&P MLP Index (the "Index"),
and are designed to pay a quarterly coupon. The Index is designed to
provide exposure to leading partnerships that trade on major US
exchanges and are classified in the GICS® Energy Sector and
GICS® Gas Utilities Industry. The Index includes both master
limited partnerships and publicly traded limited liability companies
which have a similar legal structure to MLPs and share the same tax
benefits as MLPs. Significant aspects of the tax treatment of the
ETNs may be less favorable than a direct investment in MLPs, and are
uncertain.
An investment in iPath ETNs involves significant risks, including
possible loss of principal, and may not be suitable for all investors.
The ETNs are riskier than ordinary unsecured debt securities and have no
principal protection. The ETNs are speculative and may exhibit high
volatility. The ETNs are also subject to certain investor fees, which
will have a negative effect on the value of the ETNs. You are not
guaranteed to receive coupon payments on the ETNs. You will receive
a coupon payment on a coupon payment date only to the extent that the
accrued dividend exceeds the accrued investor fee on the relevant coupon
valuation date. Owning the ETNs is not the same as owning interests
in the Index or a security directly linked to the performance of the
Index.
For more information regarding the ETNs, including the calculation of
the coupon amount, see the prospectus relating to the ETNs. The
prospectus relating to the ETNs can be found on EDGAR, the SEC website,
at: www.sec.gov.
The prospectus is also available on the product website at www.iPathETN.com.
1 Current Yield equals the current Coupon Amount annualized
and divided by the relevant closing indicative value of the ETNs,
rounded for ease of analysis. The relevant closing indicative value is
the closing indicative value of the ETNs on August 15, 2014.
Barclays is an international financial services provider engaged in
personal banking, credit cards, corporate and investment banking and
wealth management with an extensive presence in Europe, the Americas,
Africa and Asia. Barclays’ purpose is to help people achieve their
ambitions – in the right way. With over 300 years of history and
expertise in banking, Barclays operates in over 50 countries and employs
approximately 140,000 people. Barclays moves, lends, invests and
protects money for customers and clients worldwide. For further
information about Barclays, please visit our website www.barclays.com.
Selected Risk Considerations
An investment in any iPath ETNs linked to the S&P MLP Index (the “ETNs”)
involves risks. Selected risks are summarized here, but we urge you to
read the more detailed explanation of risks described under “Risk
Factors” in the applicable prospectus supplement and pricing supplement.
You May Lose Some or All of Your Principal: The ETNs are exposed
to any decrease in the Volume Weighted Average Price (“VWAP”) level
between the inception date and the applicable valuation date.
Additionally, if the VWAP level is insufficient to offset the negative
effect of the investor fee and other applicable costs, you will lose
some or all of your investment at maturity or upon redemption, even if
the VWAP value has increased. Because the ETNs are subject to an
investor fee and any other applicable costs, the return on the ETNs will
always be lower than the total return on a direct investment in the
index components. The ETNs are riskier than ordinary unsecured debt
securities and have no principal protection.
Credit of Barclays Bank PLC: The ETNs are unsecured debt
obligations of the issuer, Barclays Bank PLC, and are not, either
directly or indirectly, an obligation of or guaranteed by any third
party. Any payment to be made on the ETNs, including any payment at
maturity or upon redemption, depends on the ability of Barclays Bank PLC
to satisfy its obligations as they come due. As a result, the actual and
perceived creditworthiness of Barclays Bank PLC will affect the market
value, if any, of the ETNs prior to maturity or redemption. In addition,
in the event Barclays Bank PLC were to default on its obligations, you
may not receive any amounts owed to you under the terms of the ETNs.
Issuer Redemption: Barclays Bank PLC will have the right to
redeem or “call” the ETNs (in whole but not in part) at its sole
discretion and without your consent on any trading day on or after the
inception date until and including maturity.
The Payment on the ETNs is Linked to the VWAP Level, Not to the
Closing Level of the Index and Not to the Published Intraday Indicative
Value of the ETNs: Your payment at maturity or upon early redemption
is linked to the performance of the VWAP level, as compared to the
initial VWAP level. Although the VWAP level is intended to track the
performance of the Index, the calculation of the VWAP level is different
from the calculation of the official closing level of the Index.
Therefore, the payment at maturity or early redemption of your ETNs, may
be different from the payment you would receive if such payment were
determined by reference to the official closing level of the Index.
No Guaranteed Coupon Payments: You are not guaranteed to receive
coupon payments on the ETNs. You will receive a coupon payment on a
coupon payment date only to the extent that the accrued dividend exceeds
the accrued investor fee on the relevant coupon valuation date. The
amount of the accrued dividend on any coupon valuation date depends in
part on the aggregate cash value of distributions that a reference
holder would have been entitled to receive in respect of the index
constituents prior to the relevant coupon valuation date.
Market and Volatility Risk: The return on the ETNs is linked to
the performance of the VWAP level of the Index which, in turn, is linked
to the performance of the master limited partnerships and other
securities that are included as index constituents at any time. The
prices of the index constituents may change unpredictably and, as a
result, affect the level of the Index and the value of your ETNs in
unforeseeable ways.
Concentration Risk: The index constituents are companies in the
Energy Sector or Gas Utilities Sector, as determined by the GICS®
classification system. In addition, many of the index constituents are
smaller, non-diversified businesses that are exposed to the risks
associated with such businesses, including the lack of capital funding
to sustain or grow businesses and potential competition from larger,
better financed and more diversified businesses. The ETNs are
susceptible to general market fluctuations in the energy and gas MLP
market and to volatile increases and decreases in value, as market
confidence in, and perceptions regarding the index constituents change.
Your investment may therefore carry risks similar to a concentrated
securities investment in one industry or sector.
A Trading Market for the ETNs May Not Develop: Although the ETNs
are listed on NYSE Arca, a trading market for the ETNs may not develop
and the liquidity of the ETNs may be limited, as we are not required to
maintain any listing of the ETNs.
Restrictions on the Minimum Number of ETNs and Date Restrictions for
Redemptions: You must redeem at least 50,000 ETNs at one time
in order to exercise your right to redeem your ETNs on any redemption
date. You may only redeem your ETNs on a redemption date if we receive a
notice of redemption from you by certain dates and times as set forth in
the pricing supplement.
Tax Treatment: Significant aspects of the tax treatment of the
ETNs may be less favorable than a direct investment in MLPs and are
uncertain. You should consult your own tax advisor about your own tax
situation.
Barclays Bank PLC has filed a registration statement (including a
prospectus) with the SEC for the offering to which this communication
relates. Before you invest, you should read the prospectus and other
documents Barclays Bank PLC has filed with the SEC for more complete
information about the issuer and this offering. You may get these
documents for free by visiting www.iPathETN.com
or EDGAR on the SEC website at www.sec.gov.
Alternatively, Barclays Bank PLC will arrange for Barclays Capital Inc.
to send you the prospectus if you request it by calling toll-free
1-877-764-7284, or you may request a copy from any other dealer
participating in the offering.
BlackRock Investments, LLC assists in the promotion of the iPath ETNs.
The ETNs may be sold throughout the day on the exchange through any
brokerage account. Commissions may apply and there are tax consequences
in the event of sale, redemption or maturity of ETNs.
Barclays Capital Inc., and its affiliates, and BlackRock Investments,
LLC, and its affiliates, do not provide tax advice, and nothing
contained herein should be construed to be tax advice. Please be advised
that any discussion of U.S. tax matters contained herein (including any
attachments): (i) is not intended or written to be used, and cannot be
used, by you for the purpose of avoiding U.S. tax-related penalties, and
(ii) was written to support the promotion of marketing of the
transactions or other matters addressed herein. Accordingly, you should
seek advice based on your particular circumstances from an independent
tax advisor.
The S&P MLP Index (the “Index”) is a product of S&P Dow Jones Indices
LLC and has been licensed for use by Barclays Bank PLC. The ETNs are not
sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC or
any of its affiliates (collectively, “S&P Dow Jones Indices”). S&P Dow
Jones Indices does not make any representation or warranty, express or
implied, to the owners of the ETNs or any member of the public regarding
the advisability of investing in securities generally or in the ETNs
particularly or the ability of the Index to track general market
performance.
©2014 Barclays Bank PLC. All rights reserved. iPath, iPath ETNs and the
iPath logo are registered trademarks of Barclays Bank PLC. All other
trademarks, servicemarks or registered trademarks are the property, and
used with the permission, of their respective owners. ip-0636-1212
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NOT FDIC INSURED
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NO BANK GUARANTEE
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MAY LOSE VALUE
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Copyright Business Wire 2014