Barclays Bank PLC (“Barclays”) announced today that it has extended by
two months the expiration date of its consent solicitation (the “Consent
Solicitation”) for select issues of iPath® Commodities
Exchange-Traded Notes listed in the table below (each, an “issue” and
collectively, the “ETNs”).
The ETNs subject to the Consent Solicitation trade on the NYSE Arca
exchange under the following ticker symbols:
Name of ETN
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Ticker
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Symbol
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iPath® Bloomberg Commodity Index Total ReturnSM
ETN
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DJP
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iPath® Bloomberg Livestock Subindex Total ReturnSM
ETN
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COW
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iPath® Bloomberg Agriculture Subindex Total ReturnSM
ETN
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JJA
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iPath® Bloomberg Softs Subindex Total ReturnSM
ETN
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JJS
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iPath® Bloomberg Grains Subindex Total ReturnSM
ETN
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JJG
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iPath® Bloomberg Energy Subindex Total ReturnSM
ETN
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JJE
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iPath® Bloomberg Industrial Metals Subindex Total ReturnSM
ETN
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JJM
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iPath® Bloomberg Precious Metals Subindex Total ReturnSM
ETN
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JJP
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iPath® Bloomberg Cotton Subindex Total ReturnSM
ETN
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BAL
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iPath® Bloomberg Coffee Subindex Total ReturnSM
ETN
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JO
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iPath® Bloomberg Cocoa Subindex Total ReturnSM
ETN
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NIB
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iPath® Bloomberg Sugar Subindex Total ReturnSM
ETN
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SGG
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iPath® Bloomberg Copper Subindex Total ReturnSM
ETN
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JJC
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iPath® Bloomberg Nickel Subindex Total ReturnSM
ETN
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JJN
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iPath® Bloomberg Tin Subindex Total ReturnSM
ETN
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JJT
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iPath® Bloomberg Aluminum Subindex Total ReturnSM
ETN
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JJU
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iPath® Bloomberg Lead Subindex Total ReturnSM
ETN
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LD
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iPath® Bloomberg Platinum Subindex Total ReturnSM
ETN
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PGM
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iPath® Bloomberg Natural Gas Subindex Total ReturnSM
ETN
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GAZ
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iPath® S&P GSCI® Total Return Index ETN
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GSP
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iPath® S&P GSCI® Crude Oil Total Return
Index ETN
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OIL
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iPath® Global Carbon ETN
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GRN
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Barclays is continuing to solicit consents (the “Consents”) separately
for each issue of ETNs to the proposed amendments described below
(collectively, the “Proposed Amendment”) on the same terms and
conditions as set forth in the Consent Solicitation Statements for the
ETNs, one dated February 11, 2014 for the iPath® Bloomberg
Coffee Subindex Total ReturnSM ETN (the “Coffee ETNs”) and
one dated November 19, 2013 for the ETNs other than the Coffee ETNs
(together, the “Consent Solicitation Statements”) and the accompanying
Voter Instruction Forms (the “VIFs”). Consents are being solicited from
each person in whose name beneficial ownership of an issue of ETNs was
recorded as of 5:00 p.m., Eastern Standard Time, on the respective
record date for the Consent Solicitations, which was January 28, 2014
for the Coffee ETNs and November 8, 2013 for all issues of ETNs other
than the Coffee ETNs.
The Consent Solicitation will now expire on November 28, 2014, or such
earlier date (the “Effective Time”) on which the approval of holders of
a majority in aggregate principal amount (the “Required Consents”) of a
particular issue is received and Barclays declares the Proposed
Amendment to be effective for such issue. Barclays may terminate or
extend the Consent Solicitation at any time in its sole discretion.
If the Required Consents are received for an issue of ETNs in accordance
with the Consent Solicitation Statements, the Proposed Amendment would
amend the terms of that issue to provide Barclays with the following
unqualified rights as of the date on which the Proposed Amendment is
made effective:
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the right to redeem all, but not less than all, of the outstanding
ETNs of that issue of ETNs, prior to maturity, on the terms described
in the Consent Solicitation Statements; and
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the right to initiate a split or reverse split of the ETNs of that
issue on the terms described in the Consent Solicitation Statements.
In addition, if the Required Consents are received for an issue of ETNs
in accordance with the Consent Solicitation Statements, the Proposed
Amendment would also amend the terms of that issue as follows:
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the investor fee for that issue of ETNs would be reduced during the
period from the Effective Time of the Proposed Amendment for that
issue to the maturity date of the ETNs of that issue. The reduced
investor fee would be an amount equal to 0.70% per annum times the
principal amount of a holder’s ETNs times the relevant index factor,
calculated on a daily basis. The current investor fee is an amount
equal to 0.75% per annum times the principal amount of a holder’s ETNs
times the relevant index factor, calculated on a daily basis.
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the minimum number of ETNs of that issue required to be redeemed for a
holder to exercise its right to redeem ETNs of such issue prior to
maturity will be reduced from 50,000 ETNs to 30,000 ETNs.
The Proposed Amendment for each issue of ETNs cannot be partitioned and
will take effect as a single proposal if all conditions are met. If any
conditions fail to be met for any issue of ETNs, none of the amendments
listed above will become effective for that issue.
Under the indenture relating to the ETNs, the Depository Trust Company
(“DTC”), as registered holder of the ETNs, must deliver (and not revoke)
valid Consents in respect of at least a majority in aggregate principal
amount of the outstanding ETNs of an issue to approve the Proposed
Amendment with respect to that issue. For purposes of the Consent
Solicitation, DTC has provided an omnibus proxy to the financial
institutions acting as participants in its system to submit Consents on
its behalf and such financial institutions have, in turn, provided
proxies to Broadridge Financial Solutions, Inc. (“Broadridge”) to submit
Consents on their behalf after soliciting and obtaining consent to the
Proposed Amendment from the beneficial owners of the ETNs.
The process for vote submission described in the Consent Solicitation
Statements allows beneficial owners of the ETNs to submit their Consents
to the Proposed Amendment to Broadridge, which has been engaged by
Barclays as the solicitation agent and tabulation agent for the Consent
Solicitation. The Consent Solicitation is subject to the terms and
conditions of the Consent Solicitation Statements and the VIFs,
including with respect to the timing for delivering Consents and the
effectiveness of the Proposed Amendment.
None of Barclays, Broadridge, The Bank of New York Mellon (in its
capacity as indenture trustee for the ETNs) or any of their respective
subsidiaries or affiliates makes any recommendation as to whether
beneficial owners of the ETNs should deliver Consents to the Proposed
Amendment pursuant to the Consent Solicitation, and no one has been
authorized by any of them to make such a recommendation. The Consent
Solicitation Statements and the VIFs, which contain important
information regarding the terms and conditions of the Consent
Solicitation and the respective rights and obligations of Barclays and
the beneficial owners of the ETNs, should be read before any decision is
made with respect to the Consent Solicitation.
Any questions or requests for assistance concerning the Consent
Solicitation may be directed to Broadridge, the solicitation agent and
tabulation agent for the Consent Solicitation, at the following address
and telephone number:
Broadridge Financial Solutions, Inc.
1155 Long Island Avenue,
Edgewood, NY 11717
Attn: Barclays Commodities Consent Solicitation
Consents may be submitted as follows:
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By First Class Mail: Proxy Services P.O. Box 9175 Farmingdale,
NY 11735-9847
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By Courier: Broadridge Financial Solutions, Inc. 1155
Long Island Ave. Edgewood, NY 11717
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By Electronic Communication: www.proxyvote.com
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To Confirm Please Call: 1-855-601-2252
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About iPath® ETNs
An investment in iPath ETNs involves significant risks and may not be
suitable for all investors. The ETNs are riskier than ordinary unsecured
debt securities and have no principal protection. For more information
on risks associated with the ETNs, please see "Selected Risk
Considerations" below and the risk factors included in the relevant
prospectus.
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.
Selected Risk Considerations
An investment in the iPath ETNs described herein (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 level of the underlying index between the
inception date and the applicable valuation date. Additionally, if the
level of the underlying index 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 value of such index 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.
Market and Volatility Risk: The prices of physical commodities,
including the commodities underlying the index components, can fluctuate
widely due to supply and demand disruptions in major producing or
consuming regions. Additionally, the market value of the ETNs may be
influenced by many unpredictable factors including changes in supply and
demand relationships, governmental policies and economic events.
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.
No Interest Payments from the ETNs: You may not receive any
interest payments on the ETNs.
Restrictions on the Minimum Number of ETNs and Date Restrictions for
Redemptions: You must redeem at least 50,000 ETNs (30,000 ETNs if
the Proposed Amendment is accepted for an issue) of the same issue 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.
Uncertain Tax Treatment: Significant aspects of the tax treatment
of the ETNs 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 ETNs.
The ETNs may be sold throughout the day on the exchange through any
brokerage account. There are restrictions on the minimum number of ETNs
you may redeem directly with the issuer as specified in the applicable
prospectus. Commissions may apply and there are tax consequences in the
event of sale, redemption or maturity of ETNs. Sales in the secondary
market may result in significant losses.
“Bloomberg®”, “Bloomberg Commodity IndexSM”,
“Bloomberg Commodity Index Total ReturnSM”, “Bloomberg
Agriculture Subindex Total ReturnSM”, “Bloomberg Aluminum
Subindex Total ReturnSM”, “Bloomberg Cocoa Subindex Total
ReturnSM”, “Bloomberg Coffee Subindex Total ReturnSM”,
“Bloomberg Copper Subindex Total ReturnSM”, “Bloomberg Cotton
Subindex Total ReturnSM”, “Bloomberg Energy Subindex Total
ReturnSM”, “Bloomberg Grains Subindex Total ReturnSM”,
“Bloomberg Industrial Metals Subindex Total ReturnSM”,
“Bloomberg Lead Subindex Total ReturnSM”, “Bloomberg
Livestock Subindex Total ReturnSM”, “Bloomberg Natural Gas
Subindex Total ReturnSM”, “Bloomberg Nickel Subindex Total
ReturnSM”, “Bloomberg Platinum Subindex Total ReturnSM”,
“Bloomberg Precious Metals Subindex Total ReturnSM”,
“Bloomberg Softs Subindex Total ReturnSM”, “Bloomberg Sugar
Subindex Total ReturnSM”, “Bloomberg Tin Subindex Total ReturnSM”
and “BCOM” are service marks of Bloomberg Finance L.P. and its
affiliates (collectively, “Bloomberg”) and have been licensed for
use for certain purposes by Barclays Bank PLC. Any ETNs based on the
indices are not sponsored, endorsed, sold or promoted by Bloomberg, UBS
AG, UBS Securities LLC (“UBS”), or any of their subsidiaries or
affiliates. None of Bloomberg, UBS AG, UBS Securities or any of their
subsidiaries or affiliates makes any representation or warranty, express
or implied, to the owners of or counterparties to the ETNs or any member
of the public regarding the advisability of investing in securities or
commodities generally or in the ETNs particularly.
The S&P GSCI® Index S&P GSCI® Total Return
Index and the S&P GSCI Crude Oil Total Return Index (the “S&P
GSCI Indexes”) are products of S&P Dow Jones Indices LLC (“SPDJI”),
and have been licensed for use by Barclays Bank PLC. S&P®
and GSCI® are registered trademarks of Standard & Poor’s
Financial Services LLC (“SPFS”). These trademarks have been licensed to
SPDJI and its affiliates and sublicensed to Barclays Bank PLC for
certain purposes. The S&P GSCI Indexes are not owned, endorsed, or
approved by or associated with Goldman, Sachs & Co. or its affiliated
companies. The ETNs are not sponsored, endorsed, sold or promoted by
SPDJI, SPFS, or any of their respective 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 S&P GSCI Indexes to track general market performance.
“Barclays Global Carbon IndexTM” and “Barclays Global Carbon
Index Total ReturnTM” are trademarks of Barclays Bank PLC.
© 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.
NOT FDIC INSURED · NO BANK GUARANTEE · MAY LOSE VALUE
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.
Copyright Business Wire 2014