Barclays tenders, solicits consents for iPath S&P GSCI Crude Oil ETNs

By Marisa Wong

Los Angeles, Oct. 28 – Barclays Bank plc has begun a cash tender offer to purchase any and all of its iPath S&P GSCI Crude Oil Total Return Index exchange-traded notes due Aug. 14, 2036 (Cusip: 06738C760) linked to the S&P GSCI Crude Oil Total Return Index, according to a press release.

Barclays also launched a solicitation of consents from holders of the ETNs to a proposed amendment that would allow it to redeem in full the outstanding notes.

Noteholders who tender their notes will be deemed to have consented to the proposed amendment under the consent solicitation.

The purchase price per note tendered and accepted for purchase will be equal to 102% of the closing indicative note value on Nov. 30, reflecting a 2% premium to the closing indicative note value on the expiration date of the offer. Pricing will be announced at 4:30 p.m. ET on Nov. 30.

The tender offer and consent solicitation will expire at 11:59 p.m. ET on Nov. 30.

Results will be announced on Dec. 1, and settlement is expected to occur on Dec. 2.

If holders of a majority in aggregate principal amount of the notes have tendered their notes as of the expiration deadline, the related indenture for the notes will be amended promptly after the expiration date, giving the issuer the right to redeem all of the outstanding notes for a cash payment per note equal to the closing indicative note value on the valuation date specified by the issuer in the redemption notice. The redemption date will be the fifth business day after the valuation date.

Notes purchased under the tender offer will be immediately cancelled. Notes that have not been tendered or accepted for purchase will remain outstanding after the settlement date, subject to the redemption right if the consent solicitation is successful.

The issuer currently intends to carry out the proposed amendment right after the expiration of the tender offer and redeem all outstanding notes shortly after that.

Payment upon redemption may be greater than or less than the purchase price under the tender offer but will not include the tender premium or any amount in excess of the closing indicative note value on the valuation date of that redemption.

The bank is based in London.

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