Barclays Bank PLC launches consent solicitation period for iPath® Dow Jones-UBS Coffee Subindex Total Return℠ ETN
NEW YORK--(BUSINESS WIRE)--
Barclays Bank PLC ("Barclays") announced today the launch of its consent
solicitation (the "Consent Solicitation") for the iPath® Dow
Jones-UBS Coffee Subindex Total ReturnSM 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
Under the indenture relating to the ETNs, the Depository Trust Company
("DTC"), as registered holder of the ETNs, must deliver (and not revoke)
valid Consents in respect of at least a majority in aggregate principal
amount of the outstanding ETNs of an issue to approve the Proposed
Amendment with respect to that issue. For purposes of the Consent
Solicitation, DTC has provided an omnibus proxy to the financial
institutions acting as participants in its system to submit Consents on
its behalf and such financial institutions have, in turn, provided
proxies to Broadridge Financial Solutions, Inc. ("Broadridge") to submit
Consents on their behalf after soliciting and obtaining consent to the
Proposed Amendment from the beneficial owners of the ETNs.
The process for vote submission described in the Consent Solicitation
Statement allows beneficial owners of the ETNs to submit their Consents
to the Proposed Amendment to Broadridge, which has been engaged by
Barclays as the solicitation agent and tabulation agent for the Consent
Solicitation. The Consent Solicitation is subject to the terms and
conditions of the Consent Solicitation Statement and the VIF, including
with respect to the timing for delivering Consents and the effectiveness
of the Proposed Amendment.
None of Barclays, Broadridge, The Bank of New York Mellon (in its
capacity as indenture trustee for the ETNs) or any of their respective
subsidiaries or affiliates makes any recommendation as to whether
beneficial owners of the ETNs should deliver Consents to the Proposed
Amendment pursuant to the Consent Solicitation, and no one has been
authorized by any of them to make such a recommendation. The Consent
Solicitation Statement and the VIF, which contain important information
regarding the terms and conditions of the Consent Solicitation and the
respective rights and obligations of Barclays and the beneficial owners
of the ETNs, should be read before any decision is made with respect to
the Consent Solicitation.
Any questions or requests for assistance concerning the Consent
Solicitation may be directed to Broadridge, the solicitation agent and
tabulation agent for the Consent Solicitation, at the following address
and telephone number:
Broadridge Financial Solutions, Inc.
1155 Long Island Avenue,
Edgewood, NY 11717
Attn: Barclays Commodities Consent Solicitation
Consents may be submitted as follows:
By First Class Mail:
Broadridge Financial Solutions, Inc.
P.O. Box 9175
1155 Long Island Ave.
Farmingdale, NY 11735-9847
Edgewood, NY 11717
By Electronic Communication:
To Confirm Please Call:
About iPath® 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
The prospectus relating to the ETNs can be found on EDGAR, the SEC
website, at: www.sec.gov.
The prospectus is also available on the product website at www.iPathETN.com.
Selected Risk Considerations
An investment in the iPath ETNs described herein (the "ETNs") 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
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 has increased. Because the ETNs are subject to
an investor fee and any 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 prices of physical commodities,
including the commodities underlying the index components, can fluctuate
widely due to supply and demand disruptions in major producing or
consuming regions. Additionally, the market value of the ETNs may be
influenced by many unpredictable factors including changes in supply and
demand relationships, governmental policies and economic events.
A Trading Market for the ETNs May Not Develop: Although the ETNs
are listed on NYSE Arca, a trading market for the ETNs may not develop
and 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: You must redeem at least 50,000 ETNs (30,000 ETNs if
the Proposed Amendment is accepted for an issue) of the same issue 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 pricing supplement.
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.
Barclays Bank PLC has filed a registration statement (including a
prospectus) with the SEC for the offering to which this communication
relates.Before you invest, you should read the prospectus and
other documents Barclays Bank PLC has filed with the SEC for more
complete information about the issuer and this offering.You may
get these documents for free by visiting www.iPathETN.com
or EDGAR on the SEC website at www.sec.gov.Alternatively, Barclays Bank PLC will arrange for Barclays Capital
Inc. to send you the prospectus if you request it by calling toll-free
1-877-764-7284, or you may request a copy from any other dealer
participating in the offering.
BlackRock Investments, LLC, assists in the promotion of the ETNs.
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 Dow Jones-UBS Commodity IndexesSM are a joint product of
DJI Opco, LLC ("DJI Opco"), a subsidiary of S&P Dow Jones Indices LLC
("SPDJI"), and UBS Securities LLC ("UBS Securities"). Dow Jones®,
"Dow Jones-UBS Coffee Subindex Total ReturnSM", and "DJ-UBSCISM"
are servicemarks and/or trademarks of Dow Jones Trademark Holdings, LLC
("Dow Jones") and "UBS" is a registered trademark of UBS AG ("UBS AG").
These servicemarks and/or trademarks have been licensed to DJI Opco and
sublicensed to Barclays Bank PLC for certain purposes. The Dow Jones-UBS
Commodity IndexesSM (the "Commodity Indices") have been
licensed to Barclays Bank PLC for certain purposes. The ETNs based on
the indices are not sponsored, endorsed, sold or promoted by Dow Jones,
UBS, UBS AG, Dow Jones Opco or any of their respective subsidiaries or
affiliates, and none of Dow Jones, UBS, UBS AG, Dow Jones Opco or any of
their respective affiliates, makes any representation or warranty,
express or implied, to the owners of or counterparts to the ETNs based
on the indices or any member of the public regarding the advisability of
investing in securities or commodities generally or in the ETNs based on
any of the indices particularly.
© 2014 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
Barclays is a major global financial services provider engaged in
personal banking, credit cards, corporate and investment banking and
wealth and investment management with an extensive international
presence in Europe, the Americas, Africa and Asia. Barclays' purpose is
to help people achieve their ambitions - in the right way. With over 300
years of history and expertise in banking, Barclays operates in over 50
countries and employs approximately 140,000 people. Barclays moves,
lends, invests and protects money for customers and clients worldwide.
Barclays offers premier investment banking products and services to its
clients through Barclays Bank PLC. For more information, visit www.barclays.com
Source: Barclays Bank PLC