Barclays Bank PLC to Automatically Redeem the Barclays ETN+ Short C
Leveraged Exchange Traded Notes (TICKER: BXDC)
NEW YORK -- January 4, 2013
Barclays Bank PLC announced today the automatic redemption of its Short C
Leveraged Exchange Traded Notes linked to the Inverse Performance of the S&P
500^® Total Return (ticker: BXDC) (the “Securities”). The Securities are being
redeemed as the result of a stop loss termination event occurring on January
4, 2013, the stop loss termination date. As described in the prospectus, a
stop loss termination event occurs on any index business day prior to or on
the final valuation date, when the intraday indicative note value is less than
or equal to 15.0% of the principal amount per Security, or $10.00 for each
Security. Details of the stop loss termination event are below.
Stop Loss Termination Date: January 4, 2013
Time of Stop Loss Termination Event: 3:12 p.m. EST
Automatic Termination Level: $10.00
Holders of the Securities on the stop loss redemption date, which is the fifth
business day following the stop loss termination date, will receive a cash
payment equal to the stop loss redemption value.
Stop Loss Redemption Date: January 11, 2013
Stop Loss Redemption Value: $10.00
For more information regarding the stop loss termination event, including how
the stop loss redemption value is determined, see the prospectus relating to
the Securities under the heading “Specific Terms of the Securities—Stop Loss
Termination Event.” The prospectus relating to the Securities can be found on
EDGAR, the SEC website, at: www.sec.gov. The prospectus is also available on
the product website at www.barx-is.com .
Barclays moves, lends, invests and protects money for customers and clients
worldwide. With over 300 years of history and expertise in banking, we operate
in over 50 countries and employ over 140,000 people.
We provide large corporate, government and institutional clients with a full
spectrum of solutions to their strategic advisory, financing and risk
management needs. Our clients also benefit from access to the breadth of
expertise across Barclays. We’re one of the largest financial services
providers in the world, and are also engaged in retail banking, credit cards,
corporate banking, and wealth and investment management.
Barclays offers premier investment banking products and services to its
clients through Barclays Bank PLC.
For more information, visit www.barclays.com
Selected Risk Considerations
An investment in the Securities 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
You may lose some or all of your principal: The Securities are exposed to any
decline in the level of the Index caused by any daily decrease in the level of
the Index. Additionally, if the level of the Index is insufficient to offset
the negative effect of the daily financing charge and daily investing fee, you
will lose some or all of your investment at maturity or upon redemption, even
if the value of the Index has increased. The Securities are riskier than
ordinary unsecured debt securities and have no principal protection.
Market and Volatility Risk: The market value of the securities may be
influenced by many unpredictable factors and may fluctuate between the date
you purchase them and the maturity date or redemption date. You may also
sustain a significant loss if you sell your Securities in the secondary
market. Factors that may influence the market value of the Securities include
prevailing market prices of the US stock markets, the Index components
included in the Index, and prevailing market prices of options on the Index or
any other financial instruments related to the Index; supply and demand for
the Securities, including inventory positions with Barclays Capital Inc. or
any market maker; the time remaining to the maturity of the Securities;
interest rates; or economic, financial, political, regulatory, geographical or
judicial events that affect the level of the underlying Index or other
financial instruments related to the Index. These factors interrelate in
complex ways, and the effect of one factor on the market value of your
Securities may offset or enhance the effect of another factor.
Credit of Barclays Bank PLC: The Securities are senior 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 Securities, 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 Securities 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 Securities.
Leverage Risk: Because an investment in the Securities is leveraged, changes
in the level of the Index will have a greater impact on the payout on the
Securities than on a payout on securities that are not so leveraged. In
particular, any decrease in the level of the Index will result in a
significantly greater decrease in the payment at maturity or upon redemption,
and an investor will suffer losses on an investment in the Securities
substantially greater than an investor would if the Securities did not contain
a leverage component.
A trading market for the Securities may not develop: Although the Securities
are listed on NYSE Arca, a trading market for the Securities may not develop.
Certain affiliates of Barclays Bank PLC may engage in limited purchase and
resale transactions in the Securities, although they are not required to and
may stop at any time. We are not required to maintain any listing of the
Securities on NYSE Arca or any other exchange. Therefore, the liquidity of the
Securities may be limited.
No interest payments from the Securities: You will not receive any interest
payments on the Securities.
Restrictions on the Minimum Number of Securities and Date Restrictions for
Redemptions: You must redeem at least 25,000 Securities at one time in order
to exercise your right to redeem your Securities on an optional redemption
date. You may only redeem your Securities on an optional redemption date if we
receive a notice of redemption from you by certain dates and times as set for
in the pricing supplement. Additionally, if a stop-loss termination event
occurs after we receive your notice of redemption but prior to the close of
business on the applicable valuation date, your notice of redemption will be
deemed ineffective and we will automatically redeem your Securities on the
stop-loss redemption date at an amount equal to the stop-loss redemption
Automatic Redemption: If, on any Index business day prior to or on the final
valuation date, the intraday indicative note value of the Securities becomes
less than or equal to $10.00 per Security, a stop-loss termination event will
be deemed to have occurred and your Securities will be automatically redeemed
in an amount equal to the stop-loss redemption value. As a result of the
leverage component of the Securities, a stop-loss termination event may occur
following a decline in the Index that is significantly less than the decline
that would trigger a stop-loss termination event if there were no leverage
Uncertain tax treatment: Significant aspects of the tax treatment of the
Securities 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
and a prospectus supplement) with the US Securities and Exchange Commission
(“SEC”) for the offering to which this communication relates. Before you
invest, you should read the prospectus, prospectus supplement, pricing
supplement and other documents Barclays Bank PLC has filed with the SEC for
more complete information about Barclays Bank PLC and this offering. You may
get these documents and other documents Barclays Bank PLC has filed for free
by visiting EDGAR on the SEC website at sec.gov. Alternatively, Barclays Bank
PLC or any agent or dealer participating in this offering will arrange to send
you the prospectus, if you request it by calling your Barclays Bank PLC sales
representative, such dealer or 1-888-227-2275 (Extension 3430). A copy of the
prospectus may be obtained from Barclays Capital Inc., 745 Seventh Avenue
—Attn: US InvSol Support, New York, NY 10019.
The Securities may be sold during regular trading hours on the exchange
through any brokerage account. There are restrictions on the minimum number of
Securities you may redeem directly with the issuer as specified in the
applicable pricing supplement. Commissions may apply and there are tax
consequences in the event of sale, redemption or maturity of Securities. Sales
in the secondary market may result in significant losses.
“Standard & Poor’s^®”, “S&P^®”, “S&P 500^®” and “500” are trademarks of
Standard & Poor’s Financial Services LLC (“S&P”), and have been licensed for
use by Barclays Bank PLC. The Securities are not sponsored, endorsed, sold or
promoted by S&P and S&P makes no representation regarding the advisability of
investing in the Securities.
© 2013, Barclays Bank PLC. All rights reserved. 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 Bank PLC
Erica Chase, +1 212-412-6830
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