Additional Citi Statement on Its Crude Oil ETNs
March 22 2020 - 5:19PM
Business Wire
On March 19, 2020, Citigroup Global Markets Holdings Inc.
(“CGMHI”) announced that it intends to exercise its right to
accelerate at its option the two series of exchange-traded notes
listed in the table below (the “ETNs”).
ETN Name
Exchange
ETN Ticker
CUSIP
Underlying Index
VelocitySharesTM 3x Long Crude Oil
ETNs
NYSE Arca
UWT
17325E291
S&P GSCI® Crude Oil Index ER
VelocitySharesTM 3x Inverse Crude Oil
ETNs
NYSE Arca
DWT
17325E309
In connection with that prior announcement, CGMHI has determined
that it will discontinue “creations” of the ETNs. The
discontinuance of creations means that CGMHI will no longer issue
additional ETNs in the series set forth above, and its affiliate
Citigroup Global Markets Inc. will no longer sell additional ETNs
in the series set forth above.
The ETNs are expected to be redeemed on April 3, 2020. The
amount payable to holders of the ETNs upon redemption is expected
to be equal to the closing indicative value of the respective
series of ETNs on the final valuation date of the Optional
Acceleration Valuation Period. The Optional Acceleration Valuation
Period will be the period of five consecutive index business days
beginning on March 25, 2020 and expected to end on March 31, 2020.
The ETNs are expected to continue to trade until April 2, 2020.
As discussed in the pricing supplement for the ETNs, the
discontinuance of creations of the ETNs may impact the trading
price of the ETNs, which may result in a premium of the trading
price over the indicative value of the ETNs. Any premium may be
reduced or eliminated at any time and, if not eliminated earlier,
will certainly be eliminated at the time of redemption of the ETNs,
as the amount payable upon redemption will be based on the ETNs’
indicative value. Purchasing ETNs at a market price over the
indicative value of the ETNs is likely to lead to significant
losses.
As described in more detail in the pricing supplement for the
ETNs, if a trigger event occurs prior to the end of the Optional
Acceleration Valuation Period, holders of the ETNs will not receive
the amount described above, but rather an amount determined as set
forth in the pricing supplement for the ETNs. Full information
about the terms of the ETNs can be found in the pricing supplement
for the ETNs, which is available at the following hyperlink:
https://www.sec.gov/Archives/edgar/data/200245/000095010320005510/dp124148_424b3-uwtdwta10.htm
None of the other exchange-traded notes issued by CGMHI are
affected by this announcement.
© 2020 Citigroup Inc. Member SIPC. All rights reserved. Citi and
Citi and Arc Design are trademarks and service mark of Citigroup
Inc. or its affiliates and are used and registered throughout the
world.
Citi, the leading global bank, has approximately 200 million
customer accounts and does business in more than 160 countries and
jurisdictions. Citi provides consumers, corporations, governments
and institutions with a broad range of financial products and
services, including consumer banking and credit, corporate and
investment banking, securities brokerage, transaction services, and
wealth management.
Additional information may be found at http://www.citigroup.com
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