Barclays announced today that it will implement a 1 for 40
reverse split of its iPath® S&P GSCI® Crude Oil Total Return
Index ETN (the “ETN”), which it intends to be effective at the open
of trading on Friday, May 1, 2020 (the “Effective Date”). The ETNs
currently trade on the over-the-counter market (“OTC Market”) under
the ticker symbol “OILNF.”
ETN Name
Ticker
Exchange
CUSIP
iPath® S&P GSCI® Crude Oil
Total Return Index ETN
OILNF
OTC Market
06738C786
Barclays Bank PLC, as issuer, has the right (but no obligation)
to initiate a reverse split of the ETNs in its sole discretion. On
April 16, 2020, the closing indicative value of the ETNs was
$0.7194.
The closing indicative value of the ETNs on April 30, 2020 (the
“Record Date”) will be multiplied by forty to determine the
reverse-split adjusted closing indicative value of the ETNs. The
reverse split will be effective at the open of trading on the
Effective Date, and the ETNs will begin trading over the-counter on
a reverse-split adjusted basis on such date. The reverse-split
adjusted ETNs will have a new CUSIP but will retain the same ticker
symbol.
Investors who hold a number of ETNs that is not divisible by
forty as of the close of business on April 30, 2020 will receive
one reverse-split adjusted ETN for every forty ETNs held on May 1,
2020 and a cash payment for any odd number of ETNs remaining (the
“partials”). The cash amount due on any partials will be determined
on May 7, 2020, based on the closing indicative value of the
reverse-split adjusted ETNs on such date. This amount will be paid
by Barclays Bank PLC on May 12, 2020.
The Record Date and the Effective Date for the reverse split, as
well as the dates on which the cash amount due on any partials will
be determined and paid, may be subject to change pending a review
of the reverse split by FINRA, which processes corporate action
announcement requests for the OTC Market. If such dates change,
Barclays will make a further announcement with the revised
dates.
Recently, a material premium has developed in the trading price
of the ETNs in relation to its intraday indicative value. For
instance, the closing price of the ETNs on the OTC Market as of
April 16, 2020, reflect a 254.5% premium to the corresponding
closing indicative note value with respect to the ETNs (Source:
Barclays). Barclays announced investor guidance on March 17, 2020,
which is available at www.ipathetn.com and provides more
information on the trading price of the ETNs and the premium and
risks associated with the premium. It is possible that the reverse
split or the announcement thereof may have an impact on the trading
price of the ETNs or cause the premium to decrease or to no longer
be present, though it is not possible to predict such impact.
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 for the ETNs to which this communication relates
can be found at: http://ipathetn.com/oilnfprospectus
Barclays is the issuer of iPath® ETNs and Barclays Capital Inc.
is the Issuer’s agent in the distribution. Please contact Barclays
for further questions:
Financial advisors:
- Directly contact Barclays at etndesk@barclays.com or
1-212-528-7990 to obtain further information
Individual investors:
- Instruct your broker/advisor/custodian to email us at
etndesk@barclays.com or to call us at: 1-212-528-7990
You may call in together with your broker/advisor/custodian or
have them speak to us on your behalf.
About Barclays
Barclays is a British universal bank. We are diversified by
business, by different types of customer and client, and geography.
Our businesses include consumer banking and payments operations
around the world, as well as a top-tier, full service, global
corporate and investment bank, all of which are supported by our
service company which provides technology, operations and
functional services across the Group.
Selected Risk Considerations
An investment in the iPath ETNs described herein 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 applicable 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 level has increased or decreased, as the case may be.
Because the ETNs are subject to an investor fee and 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 market value of the ETNs
may be influenced by many unpredictable factors and may fluctuate
between the date you purchase them and the maturity date or
redemption date. You may also sustain a significant loss if you
sell your ETNs in the secondary market. Factors that may influence
the market value of the ETNs include prevailing market prices of
the U.S. stock markets or the U.S. Treasury market, the index
components included in the underlying index, and prevailing market
prices of options on such index or any other financial instruments
related to such index; and supply and demand for the ETNs,
including economic, financial, political, regulatory, geographical
or judicial events that affect the level of such index or other
financial instruments related to such index.
Concentration Risk: Because the ETNs are linked to an
index composed of futures contracts on a single commodity or in
only one commodity sector, the ETNs are less diversified than other
funds. The ETNs can therefore experience greater volatility than
other funds or investments.
A Trading Market for the ETNs May Not Develop: 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: Except with respect to the
circumstances described above or as otherwise specified in the
applicable product prospectus, you must redeem at least the minimum
number of ETNs specified in the applicable product prospectus 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 product prospectus.
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.
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.
The S&P GSCI Total Return Index and the S&P GSCI Crude
Oil Total Return Index (the “S&P GSCI Indices”) 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 Indices 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 Indices
to track general market performance.
© 2020 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
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200417005622/en/
Press Contact: Danielle Popper +1 212 526 5963
Danielle.Popper@barclays.com
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