Barclays again further extends exchange, tender offer for ETNs

Chicago, Aug. 27 – Barclays Bank plc once more extended its exchange offer and its tender offer for its iPath S&P GSCI Crude Oil Total Return Index exchange-traded notes (Cusip: 06738C760) due Aug. 14, 2036, according to a press release.

The deadline will now be 5 p.m. ET on Aug. 31 instead of 5 p.m. ET on Aug. 27 for the exchange offer and consent solicitation. The deadline has likewise been extended to 11:59 p.m. ET on Aug. 31 rather than 11:59 p.m. ET on Aug. 27 for the tender offer and its accompanying consent solicitation. Previously, tenders were due by 5 p.m. ET on Aug. 13 and originally by 5 p.m. ET on July 29.

The bank is offering either to buy the ETNs or exchange them for new iPath Pure Beta Crude Oil ETNs due April 18, 2041 (Cusip: 06740P221).

Noteholders who choose to tender their old notes for cash will now receive cash that will be equal to 105% of the closing indicative note value of the old notes on Aug. 27, which reflects a 5% premium to the closing indicative note value of the old notes on the expiration date.

Previously, the offer was for $135 per note, reflecting a premium of approximately 2.27% to the trading price on July 29 when the closing indicative value was $133.0523.

Initially, Barclays was offering $127 per note, or a premium of 3.25% to the trading price on June 16. The closing indicative value of the old notes was $126.136 on June 16.

Noteholders who exchange their old notes will receive six new notes. The new notes were first issued on April 26, 2011. The new notes that are part of the exchange will be consolidated and form a single class with the notes currently outstanding.

The exchange ratio per old note now represents an updated premium of around 5.68%, based on the closing indicative value of the old notes and the new notes on Aug. 27.

Each offer is accompanied by a consent solicitation from noteholders of the old notes to amend some provisions.

Tendering noteholders will be deemed to have consented to the proposed amendment.

If noteholders holding more than half of the notes tender the notes in either the tender offer or the exchange offer, the indenture and global certificate will be amended to allow Barclays to repurchase all of the old notes for a cash payment equal to the closing indicative value of the old notes on the valuation date, to be paid five business days thereafter.

As of the most recently extended deadline, noteholders validly tendered 36,591 old notes in the exchange offer and 31,020 of old notes in the tender offer, for a total of 67,611 of old notes.

Barclays intends to announce its decision whether to accept valid tenders of old notes for purchase in the tender after the offer expires.

Barclays (212 528-7990, etndesk@barclays.com) is the dealer manager.

The exchange agent and tender agent is Bank of New York Mellon (+44 20 7964 2536, debtrestructuring@bnymellon.com).

The information agent is D.F. King & Co., Inc. (212 269-5550, 866 342-4883, barclays@dfking.com).

Barclays is a transatlantic consumer and wholesale bank.

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