Barclays Launches the Barclays ETN+ Select MLP Exchange Traded Note
New Barclays ETN+ Select MLP ETN (ticker: ATMP) provides investors with
exposure to a select group of partnerships and companies in the MLP space
NEW YORK -- March 13, 2013
Barclays Bank PLC announced today the launch of the Barclays ETN+ Select MLP
Exchange Traded Note (“ETN”) on the NYSE Arca stock exchange under the ticker
symbol ATMP. The ETN is designed to provide investors with exposure to a
basket of midstream US master limited partnerships (“MLPs”), limited liability
companies (“LLCs”) and corporations by tracking the volume weighted average
price (“VWAP”) of the Atlantic Trust Select MLP Index (the “Index”).
Additionally, the Index will also provide exposure to general partners of US
MLPs in Canada.
“In response to the growing demand for yield, this MLP ETN offers the
potential for income along with upside appreciation via a more focused
exposure to a subset of general partners and limited partners in the MLP
space, developed by the Atlantic Trust team,” said Ian Merrill, Head of
Barclays ETNs, Americas. “We are pleased to have been able to extend our range
of Barclays ETN+ ETNs through this partnership.”
“The objective of the Index is to focus on a select group of midstream MLPs,
as defined by credit ratings, size and other criteria, and their respective
general partners,” said Adam Karpf, Portfolio Manager and Managing Director at
Atlantic Trust. “Within the MLP sector, we believe that investment grade
midstream MLPs offer an attractive opportunity set to capitalize on the
secular trends in the energy industry. The inclusion of midstream general
partners in the Index, structured as both MLPs and corporations, provides
additional exposure to a fast growing and attractive sub-sector in the energy
The ETN prospectus can be found on EDGAR, the SEC website at: www.sec.gov, as
well as on the product website at www.etnplus.com.
Barclays ETN+ ETNs are senior, unsecured, unsubordinated debt securities
issued by Barclays Bank PLC. Barclays Bank PLC is the issuer of Barclays ETN+
ETNs and Barclays Capital Inc. is the issuer’s agent.
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 any ETNs linked to the Atlantic Trust Select MLP Index (the
“ETNs”) 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 supplement.
You May Lose Some or All of Your Principal: The ETNs are exposed to any
decrease in the Volume Weighted Average Price (“VWAP”) level between the
inception date and the applicable valuation date. Additionally, if the VWAP
level is insufficient to offset the negative effect of the investor fee and
other applicable costs, you will lose some or all of your investment at
maturity or upon redemption, even if the VWAP value has increased. Because the
ETNs are subject to an investor fee and any other applicable costs, the return
on the ETNs will always be lower than the total return on a direct investment
in the index components. The ETNs are riskier than ordinary unsecured debt
securities and have no principal protection.
Credit of Barclays Bank PLC: The ETNs are 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
ETNs, 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 ETNs 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
Issuer Redemption: Barclays Bank PLC will have the right to redeem or “call”
the ETNs (in whole but not in part) at its sole discretion and without your
consent on any trading day on or after the inception date until and including
The Payment on the ETNs is Linked to the VWAP Level, Not to the Closing Level
of the Index and Not to the Published Intraday Indicative Value of the ETNs:
Your payment at maturity or upon early redemption is linked to the performance
of the VWAP level, as compared to the initial VWAP level. Although the VWAP
level is intended to track the performance of the Index, the calculation of
the VWAP level is different from the calculation of the official closing level
of the Index. Therefore, the payment at maturity or early redemption of your
ETNs, may be different from the payment you would receive if such payment were
determined by reference to the official closing level of the Index.
No Guaranteed Coupon Payments: You are not guaranteed to receive coupon
payments on the ETNs. You will receive a coupon payment on a coupon payment
date only to the extent that the accrued dividend exceeds the accrued investor
fee on the relevant coupon valuation date. The amount of the accrued dividend
on any coupon valuation date depends in part on the aggregate cash value of
distributions that a reference holder would have been entitled to receive in
respect of the index constituents prior to the relevant coupon valuation date.
Market and Volatility Risk: The return on the ETNs is linked to the
performance of the VWAP level of the Index which, in turn, is linked to the
performance of the master limited partnerships and other securities that are
included as index constituents at any time. The prices of the index
constituents may change unpredictably and, as a result, affect the level of
the Index and the value of your ETNs in unforeseeable ways.
Concentration Risk: The index constituents are companies in the Energy Sector
or Gas Utilities Sector, as determined by the GICS® classification system. In
addition, many of the index constituents are smaller, non-diversified
businesses that are exposed to the risks associated with such businesses,
including the lack of capital funding to sustain or grow businesses and
potential competition from larger, better financed and more diversified
businesses. The ETNs are susceptible to general market fluctuations in the
energy and gas MLP market and to volatile increases and decreases in value, as
market confidence in, and perceptions regarding the index constituents change.
Your investment may therefore carry risks similar to a concentrated securities
investment in one industry or sector.
A Trading Market for the ETNs May Not Develop: Although we plan to apply to
list the ETNs on NYSE Arca, a trading market for the ETNs may not develop and
the liquidity of the ETNs may be limited, as we are not required to maintain
any listing of the ETNs.
Restrictions on the Minimum Number of ETNs and Date Restrictions for
Redemptions: You must redeem at least 50,000 ETNs at one time in order to
exercise your right to redeem your ETNs on any redemption date. You may only
redeem your ETNs on a redemption date if we receive a notice of redemption
from you by certain dates and times as set forth in the pricing supplement.
Tax Treatment: Significant aspects of the tax treatment of the ETNs may be
less favorable than a direct investment in MLPs and 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)
with the SEC for the offering to which this communication relates. Before you
invest, you should read the prospectus and other documents Barclays Bank PLC
has filed with the SEC for more complete information about the issuer and this
offering. You may get these documents for free by visiting www.etnplus.com or
EDGAR on the SEC website at www.sec.gov. Alternatively, Barclays Bank PLC will
arrange for Barclays Capital Inc. to send you the prospectus if you request it
by calling toll-free 1-888 227 2275 (ext. 2-3430), or you may request a copy
from any other dealer participating in the offering.
The ETNs may be sold throughout the day on the exchange through any brokerage
account. Commissions may apply and there are tax consequences in the event of
sale, redemption or maturity of ETNs.
Atlantic Trust Select MLP Index is a trademark of Barclays Bank PLC.
©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
Mark Lane, +1-212-412-1413
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