Barclays Announces Cash Tender Offers and Consent Solicitation for Its Exchange-Traded Notes
New York, NY – In a recent press release, Barclays Bank PLC (the “Issuer”) has announced its intention to make cash tender offers (each, an “Offer”) to purchase any and all of its outstanding exchange-traded notes (the “Notes” or the “ETNs”) of the three separate series listed below, and to solicit consents (each, a “Consent Solicitation”) from holders of the Notes to amend certain provisions of the Notes:
| Series | ISIN |
|---|---|
| iPath Series B S&P 500 VIX Short-Term Futures ETN | US161823AR05 |
| iPath Series B S&P 500 VIX Mid-Term Futures ETN | US161823AR15 |
| iPath Series B S&P 500 VIX Short-Term Futures ETN | US161823AR35 |
What Does This Mean for Noteholders?
If you hold any of the above-mentioned ETNs, this tender offer and consent solicitation may impact you. The Offer allows Noteholders to sell their Notes back to Barclays at a price equal to 100% of the principal amount, plus any accrued and unpaid interest. Noteholders who choose to participate in the Offer will also be required to deliver their consents to the proposed amendments. The deadline to accept the Offer and deliver consents is October 13, 2023. It’s essential to note that tendering your Notes and delivering consents are separate actions.
What Does This Mean for the World?
The implications of Barclays’ decision to make these cash tender offers and solicit consents for its ETNs extend beyond the individual Noteholders. This move could have broader consequences for the exchange-traded notes market as a whole. Some market observers believe that this action may signal a trend among ETN issuers to address the increasing costs of maintaining these products, particularly those with low asset bases. Others speculate that this could lead to increased competition as other issuers attempt to lure investors away from Barclays’ ETNs. Only time will tell how these developments will unfold.
Conclusion
Barclays’ announcement of its intention to make cash tender offers for its three exchange-traded notes and solicit consents for proposed amendments to the Notes’ terms has significant implications for Noteholders and the broader ETN market. For Noteholders, this offer provides an opportunity to sell their Notes back to Barclays at a premium, while also allowing them to consent to proposed changes. For the world, this move could set a precedent for other ETN issuers looking to address the costs of maintaining their products. As always, it’s essential to stay informed and consult with financial professionals when making decisions regarding your investments.
- Barclays Bank PLC announces cash tender offers for three exchange-traded notes and solicitation of consents to amend certain provisions.
- Noteholders can sell their Notes back to Barclays at 100% of the principal amount, plus accrued and unpaid interest.
- Proposed amendments may have broader implications for the ETN market as a whole.
- Stay informed and consult with financial professionals when making decisions regarding investments.
