Barclays Bank PLC (“Barclays”) announced today the launch of its consent solicitation (the “Consent Solicitation”) for the iPath
Dow Jones-UBS Coffee Subindex Total Return
ETN (“the ETNs”).
Barclays is soliciting consents (the “Consents”) for the ETNs to the proposed amendments described below (collectively, the “Proposed Amendment”) on the terms and conditions as set forth in the Consent Solicitation Statement, dated February 11, 2014 (the “Consent Solicitation Statement”) and the accompanying Voter Instruction Form (the “VIF”). Consents are being solicited from each person in whose name beneficial ownership of an issue of Existing ETNs was recorded as of 5:00 p.m., Eastern Standard Time, on January 28, 2014, the record date for the Consent Solicitation.
The Consent Solicitation will expire on March 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 the ETNs is received and Barclays declares the Proposed Amendment to be effective. Barclays may terminate or extend the Consent Solicitation at any time in its sole discretion.
If the Required Consents are received for the ETNs in accordance with the Consent Solicitation Statement, the Proposed Amendment would amend the terms 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, 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 on the terms described in the Consent Solicitation Statement.
In addition, if the Required Consents are received the ETNs in accordance with the Consent Solicitation Statement, the Proposed Amendment would also amend the terms as follows:
- The investor fee for the 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. 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 the ETNs required to be redeemed for a holder to exercise its right to redeem ETNs prior to maturity will be reduced from 50,000 ETNs to 30,000 ETNs.
The Proposed Amendment for the 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 the ETNs, none of the amendments listed above will become effective.