Barclays Bank PLC (“Barclays”) announced today that it has
entered into a supplemental indenture (the “Supplemental
Indenture”) effectively amending the terms of the four iPath®
Commodities Exchange-Traded Notes (each, an “issue” and
collectively, the “ETNs”) set forth in the table below. The
execution of the Supplemental Indenture follows the announcement
made on April 1, 2015 that Barclays had 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 listed in the table below.
Barclays has declared the effectiveness of the Proposed
Amendment (now, the “Amendment”) for these four series of ETNs as
of April 30, 2015 (the “Amendment Effective Date”). In addition to
entering into the Supplemental Indenture, Barclays has filed
amended pricing supplements dated as of April 30, 2015, which
reflect the Amendment for such issues of ETNs.
As stated in the announcement by Barclays on April 1, 2015, the
Consent Solicitation concluded for all series of iPath ETNs as of
5:00 pm, New York City time, on March 31, 2015, at which time it
was determined that the Proposed Amendment would not be made with
respect to the remaining issues of ETNs for which the Required
Consents were not received.
The ETNs for which the Amendment is now effective are listed in
the table below, along with the respective NYSE Arca ticker symbols
and CUSIP numbers:
Name of ETN
Ticker Symbol
CUSIP
iPath® Bloomberg Commodity Index Total ReturnSM ETN
DJP
06738C778
iPath® Bloomberg Cocoa Subindex Total
ReturnSM ETN
NIB
06739H313
iPath® Bloomberg Lead Subindex Total ReturnSM ETN
LD
06739H263
iPath® S&P GSCI® Total Return Index ETN
GSP
06738C794
As of the Amendment Effective Date, the terms of the four series
of ETNs have been amended and Barclays now has the following
unqualified rights:
- 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 terms of these four issues have been amended as
follows:
- the investor fee for that issue of ETNs
has been reduced during the period beginning the day after April
30, 2015 until the redemption date, if after April 30, 2015, or the
maturity date of that issue of ETNs. The reduced investor fee will
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.
Issuer Redemption: Barclays Bank PLC will have the right
to redeem or “call” the ETNs of the same series (in whole but not
in part) at its sole discretion and without your consent on any
trading day on or after the Amendment Effective Date until and
including maturity.
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 30,000
ETNs 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 Cocoa Subindex Total
ReturnSM”, “Bloomberg Lead 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 (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.
© 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.
NOT FDIC INSURED · NO BANK GUARANTEE · MAY
LOSE VALUE
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.
BarclaysMark Lane, +1 212-412-1413mark.lane@barclays.com
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