Barclays gives results of tender offer for iPath MSCI India index ETNs

By Sarah Lizee

Olympia, Wash., Sept. 2 – Barclays Bank plc announced the results of its cash tender offer to purchase any and all of its iPath MSCI India index ETNs due Dec. 18, 2036 (Cusip: 06739F291) and solicitation of consents from holders to amend some provisions of the notes.

The issuer received and accepted 487,339 notes, or 54.54% of the outstanding amount, validly tendered prior to the expiration deadline.

The aggregate purchase price is $42,108,867.43, reflecting the previously announced purchase price of $86.4057 per $50 principal amount of notes.

Settlement is slated for Sept. 4.

Notes purchased by the issuer under the offer will be immediately canceled.

Under the consent bid, the issuer obtained the requisite consents to the proposed amendment.

The offer and consent solicitation expired at 11:59 p.m. ET on Sept. 1, extended from 11:59 p.m. ET on Aug. 4 originally.

All conditions to the offer were satisfied or waived. The offer was conditioned on the minimum tender of 50% in aggregate principal amount of outstanding notes at or prior to the expiration deadline.

As previously reported, the purchase price reflects a 4% premium to the closing indicative note value of the notes on Sept. 1. Previously, the purchase price was to reflect a 2% premium to the closing indicative note value of the notes on Aug. 4.

Noteholders who had already tendered their notes under the original offer were not required to take any further action to receive the new premium.

Noteholders who tendered and did not withdraw their notes were be deemed to have consented to the proposed amendment under the consent solicitation.

The indenture and the global certificate of the notes will be amended to provide the issuer with the right to redeem all but not part of the outstanding notes on the redemption date for a cash payment per note equal to the closing indicative note value on the valuation date. The redemption date will be the fifth business day after the valuation date.

The issuer currently intends to redeem all outstanding notes shortly after the proposed amendment becomes effective but no later than Dec. 31.

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

The notes were determined to be subject to some regulations issued by the Securities and Exchange Board of India (SEBI) relating to offshore derivative instruments linked to Indian equity securities, and SEBI advised the issuer that the positions being held in the notes may continue only until Dec. 31.

The dealer manager is Barclays (212 528-7990 or etndesk@barclays.com), and the tender and information agent is D.F. King & Co., Inc. (barclays@dfking.com).

Barclays Bank is a banking and financial services company based in London.

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