Barclays Bank PLC (“Barclays”) announced today that it has concluded its
consent solicitation (the “Consent Solicitation”) for select issues of
iPath® Commodities Exchange-Traded Notes (each, an “issue” and
collectively, the “ETNs”) set forth in the table below. Barclays has
received the consents to make the proposed amendments described below
(collectively, the “Proposed Amendment”) from holders of a majority in
aggregate principal amount (the “Required Consents”) of each of the four
issues of ETNs noted in the table below.
For these four issues of ETNs, Barclays has declared 5:00 pm, New York
City time, on March 31, 2015, as the “Effective Time” for the consents
received and plans to enter into a supplemental indenture to make the
Proposed Amendment within 30 days of the Effective Time and will file an
amended pricing supplement reflecting the Proposed Amendment for such
issues of ETNs. For the remaining issues of ETNs for which the Required
Consents were not received, the Consent Solicitation has concluded as of
5:00 pm, New York City time, on March 31, 2015, and the Proposed
Amendment will not be made with respect to those issues of ETNs.
The ETNs subject to the Consent Solicitation trade on the NYSE Arca
exchange under the following ticker symbols:
|
Name of ETN
|
|
|
|
|
Ticker
Symbol
|
|
|
|
|
Required
Consents
Received
|
iPath® Bloomberg Commodity Index Total ReturnSM
ETN
|
|
|
|
|
DJP
|
|
|
|
|
YES
|
iPath® Bloomberg Cocoa Subindex Total ReturnSM
ETN
|
|
|
|
|
NIB
|
|
|
|
|
YES
|
iPath® Bloomberg Lead Subindex Total ReturnSM
ETN
|
|
|
|
|
LD
|
|
|
|
|
YES
|
iPath® S&P GSCI® Total Return Index ETN
|
|
|
|
|
GSP
|
|
|
|
|
YES
|
iPath® Bloomberg Livestock Subindex Total ReturnSM
ETN
|
|
|
|
|
COW
|
|
|
|
|
NO
|
iPath® Bloomberg Agriculture Subindex Total ReturnSM
ETN
|
|
|
|
|
JJA
|
|
|
|
|
NO
|
iPath® Bloomberg Softs Subindex Total ReturnSM
ETN
|
|
|
|
|
JJS
|
|
|
|
|
NO
|
iPath® Bloomberg Grains Subindex Total ReturnSM
ETN
|
|
|
|
|
JJG
|
|
|
|
|
NO
|
iPath® Bloomberg Energy Subindex Total ReturnSM
ETN
|
|
|
|
|
JJE
|
|
|
|
|
NO
|
iPath® Bloomberg Industrial Metals Subindex Total ReturnSM
ETN
|
|
|
|
|
JJM
|
|
|
|
|
NO
|
iPath® Bloomberg Precious Metals Subindex Total ReturnSM
ETN
|
|
|
|
|
JJP
|
|
|
|
|
NO
|
iPath® Bloomberg Cotton Subindex Total ReturnSM
ETN
|
|
|
|
|
BAL
|
|
|
|
|
NO
|
iPath® Bloomberg Coffee Subindex Total ReturnSM
ETN
|
|
|
|
|
JO
|
|
|
|
|
NO
|
iPath® Bloomberg Sugar Subindex Total ReturnSM
ETN
|
|
|
|
|
SGG
|
|
|
|
|
NO
|
iPath® Bloomberg Copper Subindex Total ReturnSM
ETN
|
|
|
|
|
JJC
|
|
|
|
|
NO
|
iPath® Bloomberg Nickel Subindex Total ReturnSM
ETN
|
|
|
|
|
JJN
|
|
|
|
|
NO
|
iPath® Bloomberg Tin Subindex Total ReturnSM
ETN
|
|
|
|
|
JJT
|
|
|
|
|
NO
|
iPath® Bloomberg Aluminum Subindex Total ReturnSM
ETN
|
|
|
|
|
JJU
|
|
|
|
|
NO
|
iPath® Bloomberg Platinum Subindex Total ReturnSM
ETN
|
|
|
|
|
PGM
|
|
|
|
|
NO
|
iPath® Bloomberg Natural Gas Subindex Total ReturnSM
ETN
|
|
|
|
|
GAZ
|
|
|
|
|
NO
|
iPath® S&P GSCI® Crude Oil Total Return
Index ETN
|
|
|
|
|
OIL
|
|
|
|
|
NO
|
iPath® Global Carbon ETN
|
|
|
|
|
GRN
|
|
|
|
|
NO
|
|
The terms and conditions under which Barclays solicited consents were
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 were 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 dates 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 Proposed Amendment will amend the terms of the four issues for which
the Required Consents were received to provide Barclays with the
following unqualified rights as of the date on which the Proposed
Amendment is made effective:
• 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
• 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, the Proposed Amendment would also amend the terms of these
four issues as follows:
• 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.
• 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.
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.
© 2015 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.
Barclays is an international financial services provider engaged in
personal, corporate and investment banking, credit cards 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 325 years of history and expertise in banking,
Barclays operates in over 50 countries and employs over 130,000 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.
NOT FDIC INSURED · NO BANK GUARANTEE · MAY LOSE VALUE
Copyright Business Wire 2015