Barclays Bank PLC (“Barclays”) announced today that it has commenced a consent solicitation (the “Consent Solicitation”) for select issues of iPath
Commodities Exchange-Traded Notes with the ticker symbols listed below (each, an “issue” and collectively, the “ETNs”).
Subject to the terms and conditions set forth in the Consent Solicitation Statement, dated November 19, 2013 (the “Consent Solicitation Statement”), and the accompanying Voter Instruction Form (the “VIF”), Barclays is soliciting consents (the “Consents”) to the proposed amendments described below (collectively, the “Proposed Amendment”) separately for each issue of ETNs bearing the ticker symbols set out in the list below. Consents are being 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 November 8, 2013, the record date for the Consent Solicitation. The Consent Solicitation will expire on January 31, 2014, or such earlier date (the “Effective Time”) on which the approval of holders of a majority in aggregate principal amount (the “Required Consents”) of a particular issue is received and Barclays declares the Proposed Amendment to be effective for such issue. Barclays may terminate or extend the Consent Solicitation at any time in its sole discretion.
If the Required Consents are received for an issue of ETNs in accordance with the Consent Solicitation Statement, the Proposed Amendment would amend the terms of that issue 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 Statement; and
- the right to initiate a split or reverse split of the ETNs of that issue on the terms described in the Consent Solicitation Statement.
In addition, if the required Consents are received for an issue of ETNs in accordance with the Consent Solicitation Statement, the Proposed Amendment would also amend the terms of that issue 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.
The Proposed Amendment for each issue of ETNs cannot be partitioned and will take effect as a single proposal if all conditions are met. If any conditions fail to be met for any issue of ETNs, none of the amendments listed above will become effective for that issue.