Barclays Bank PLC (“Barclays”)
announced today a new redemption option for holders of the iPath®
S&P GSCI® Crude Oil Total Return Index ETN (Ticker: OILNF) (the
“OILNF ETNs”). The OILNF ETNs were de-listed from NYSE Arca on
April 12, 2018 and currently trade in over-the-counter markets (the
“OTC Markets”).
Holders of the OILNF ETNs can now put and simultaneously
purchase an equivalent amount of the iPath® Pure Beta Crude Oil
Exchange Traded Notes (Ticker: OLEM)(the “OLEM ETNs”) from Barclays
in an amount having an equal dollar value, with each transaction
having the same valuation date and settlement date (a “Net
Settlement”). In this case, upon redemption of the OILNF ETNs,
holders would receive a number of OLEM ETNs equal to the aggregate
daily redemption value of the redeemed OILNF ETNs, rounded to the
nearest full OLEM ETN, with a residual cash payment for any
“partial” remaining ETNs.
Holders of the OILNF ETNs that wish to sell their OILNF ETNs
and/or purchase the OLEM ETNs may take any of the following
actions:
- Sell OILNF ETNs and/or purchase OLEM ETNs on the secondary
market at the prevailing trading price on the exchange (subject to
relevant trading restrictions on the OILNF ETNs);
- Put OILNF ETNs to Barclays (with no minimum early redemption
size) and simultaneously purchase OLEM ETNs from Barclays in an
amount having an equal dollar value, with each transaction having
the same valuation date and settlement date (a Net Settlement). In
this case, upon redemption of its OILNF ETNs, the holder would
receive a number of OLEM ETNs equal to the aggregate daily
redemption value of the redeemed OILNF ETNs, rounded to the nearest
full OLEM ETN, with a residual cash payment for any “partial”
remaining ETNs. Holders who wish to effect a Net Settlement must
instruct their broker or other person through whom they hold their
OILNF ETNs in accordance with the prospectus for the OILNF ETNs.
Holders may also contact Barclays at etndesk@barclays.com or
1-212-528-7990 to obtain further information regarding the
procedures for a Net Settlement.
- Put OILNF ETNs to Barclays under the early redemption option
(with no minimum early redemption size) without simultaneously
purchasing OLEM ETNs or purchase OLEM ETNs from Barclays without
simultaneously redeeming OILNF ETNs, in each case for the
applicable cash value.
Investors should exercise extreme caution before purchasing
or selling OILNF ETNs at a market price that reflects a premium
over the intraday indicative value or daily redemption value, as
the case may be. The intraday indicative value of the OILNF
ETNs is intended to provide investors with an approximation of the
effect that changes in the level of the Index during the current
trading day would have on the daily redemption value of the OILNF
ETNs from the previous day. The intraday indicative value of the
OILNF ETNs is calculated and published with a frequency of at least
every 15 seconds throughout the trading day. The daily redemption
value is the closing value of the OILNF ETNs calculated by us on a
daily basis and is used to determine the payment at maturity or
upon early redemption. The secondary market for the OILNF ETNs has
been volatile and unpredictable, and investors should not assume
that the OILNF ETNs will continue to trade at a premium in relation
to their intraday indicative value. As a result, if investors
purchase the OILNF ETNs at a price which reflects a premium over
the intraday indicative value or daily redemption value, as the
case may be, they may experience a significant loss if they sell
the ETNs at a time when such premium is no longer present, if they
redeem the OILNF ETNs at the daily redemption value or if they hold
the OILNF ETNs until maturity.
For more information on what a premium in the market prices
represents, please refer to the iPath website under “About
ETNs.”
The OILNF ETNs and the OLEM ETNs are collectively referred to
herein as the “ETNs.” Investors are also encouraged to refer to the
prospectus relating to the respective ETNs for risk factors
relating to the market value of the ETNs, including the risks
associated with a premium in market prices on the OTC Market.
The obligation of Barclays to accept any early redemption of
ETNs is subject to the procedures set forth in the section
“Specific Terms of the ETNs—Early Redemption Procedures” in the
prospectus relating to the ETNs. These procedures include
delivering a notice of redemption and signed confirmation to
Barclays prior to the relevant valuation date within the time
frames set forth in the prospectus and instructing the DTC
custodian at which the ETNs are held to book and settle a delivery
vs. payment trade with respect to the 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 for the ETNs to which this communication relates
can be found at:
http://ipathetn.com/oilnfprospectus
http://ipathetn.com/olemprospectus
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. Barclays offers investment
banking products and services in the US through Barclays Capital
Inc. For further information about Barclays, please visit our
website home.barclays.
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.
Issuer Redemption: Barclays Bank PLC will have the right to
redeem or call a series of the OLEM 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.
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.
Pure Beta Series 2 Methodology. The Barclays Pure Beta
Series 2 Methodology with respect to the OLEM ETNs seeks to
mitigate distortions in the commodities markets associated with
investment flows and supply and demand distortions. However, there
is no guarantee that the Pure Beta Series 2 Methodology will
succeed in these objectives and an investment in the OLEM ETNs
linked to indices using this methodology may underperform compared
to an investment in a traditional commodity index linked to the
same commodities.
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
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version on businesswire.com: https://www.businesswire.com/news/home/20200604005757/en/
Press Danielle Popper +1 212 526 5963
Danielle.Popper@barclays.com
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