Barclays Bank PLC launches consent solicitation period for iPath® Dow
Jones-UBS Coffee Subindex Total Return℠ ETN
NEW YORK -- February 11, 2014
Barclays Bank PLC (“Barclays”) announced today the launch of its consent
solicitation (the “Consent Solicitation”) for the iPath^® Dow Jones-UBS Coffee
Subindex Total Return^SM ETN (“the ETNs”).
Barclays is soliciting consents (the “Consents”) for the ETNs to the proposed
amendments described below (collectively, the “Proposed Amendment”) on the
terms and conditions as set forth in the Consent Solicitation Statement, dated
February 11, 2014 (the “Consent Solicitation Statement”) and the accompanying
Voter Instruction Form (the “VIF”). Consents are being solicited from each
person in whose name beneficial ownership of an issue of Existing ETNs was
recorded as of 5:00 p.m., Eastern Standard Time, on January 28, 2014, the
record date for the Consent Solicitation.
The Consent Solicitation will expire on March 31, 2014, or such earlier date
(the “Effective Time”) on which the approval of holders of a majority in
aggregate principal amount (the “Required Consents”) of the ETNs is received
and Barclays declares the Proposed Amendment to be effective. Barclays may
terminate or extend the Consent Solicitation at any time in its sole
If the Required Consents are received for the ETNs in accordance with the
Consent Solicitation Statement, the Proposed Amendment would amend the terms
to provide Barclays with the following unqualified rights as of the date on
which the Proposed Amendment is made effective:
*the right to redeem all, but not less than all, of the outstanding ETNs,
prior to maturity, on the terms described in the Consent Solicitation
*the right to initiate a split or reverse split of the ETNs on the terms
described in the Consent Solicitation Statement.
In addition, if the Required Consents are received the ETNs in accordance with
the Consent Solicitation Statement, the Proposed Amendment would also amend
the terms as follows:
*The investor fee for the ETNs would be reduced during the period from the
Effective Time of the Proposed Amendment for that issue to the maturity
date of the ETNs. The reduced investor fee would be an amount equal to
0.70% per annum times the principal amount of a holder’s ETNs times the
relevant index factor, calculated on a daily basis. The current investor
fee is an amount equal to 0.75% per annum times the principal amount of a
holder’s ETNs times the relevant index factor, calculated on a daily
*The minimum number of the ETNs required to be redeemed for a holder to
exercise its right to redeem ETNs prior to maturity will be reduced from
50,000 ETNs to 30,000 ETNs.
The Proposed Amendment for the ETNs cannot be partitioned and will take effect
as a single proposal if all conditions are met. If any conditions fail to be
met for the ETNs, none of the amendments listed above will become effective.
Under the indenture relating to the ETNs, the Depository Trust Company
(“DTC”), as registered holder of the ETNs, must deliver (and not revoke) valid
Consents in respect of at least a majority in aggregate principal amount of
the outstanding ETNs of an issue to approve the Proposed Amendment with
respect to that issue. For purposes of the Consent Solicitation, DTC has
provided an omnibus proxy to the financial institutions acting as participants
in its system to submit Consents on its behalf and such financial institutions
have, in turn, provided proxies to Broadridge Financial Solutions, Inc.
(“Broadridge”) to submit Consents on their behalf after soliciting and
obtaining consent to the Proposed Amendment from the beneficial owners of the
The process for vote submission described in the Consent Solicitation
Statement allows beneficial owners of the ETNs to submit their Consents to the
Proposed Amendment to Broadridge, which has been engaged by Barclays as the
solicitation agent and tabulation agent for the Consent Solicitation. The
Consent Solicitation is subject to the terms and conditions of the Consent
Solicitation Statement and the VIF, including with respect to the timing for
delivering Consents and the effectiveness of the Proposed Amendment.
None of Barclays, Broadridge, The Bank of New York Mellon (in its capacity as
indenture trustee for the ETNs) or any of their respective subsidiaries or
affiliates makes any recommendation as to whether beneficial owners of the
ETNs should deliver Consents to the Proposed Amendment pursuant to the Consent
Solicitation, and no one has been authorized by any of them to make such a
recommendation. The Consent Solicitation Statement and the VIF, which contain
important information regarding the terms and conditions of the Consent
Solicitation and the respective rights and obligations of Barclays and the
beneficial owners of the ETNs, should be read before any decision is made with
respect to the Consent Solicitation.
Any questions or requests for assistance concerning the Consent Solicitation
may be directed to Broadridge, the solicitation agent and tabulation agent for
the Consent Solicitation, at the following address and telephone number:
Broadridge Financial Solutions, Inc.
1155 Long Island Avenue, Edgewood, NY 11717
Attn: Barclays Commodities Consent Solicitation
Consents may be submitted as follows:
By First Class Mail: By Courier:
Proxy Services Broadridge Financial Solutions, Inc.
P.O. Box 9175 1155 Long Island Ave.
Farmingdale, NY 11735-9847 Edgewood, NY 11717
By Electronic Communication: To Confirm Please Call:
About iPath^® ETNs
An investment in iPath ETNs involves significant risks and may not be suitable
for all investors. The ETNs are riskier than ordinary unsecured debt
securities and have no principal protection. For more information on risks
associated with the ETNs, please see "Selected Risk Considerations" below and
the risk factors included in the relevant prospectus.
The prospectus relating to the ETNs can be found on EDGAR, the SEC website,
at: www.sec.gov. The prospectus is also available on the product website at
Selected Risk Considerations
An investment in the iPath ETNs described herein (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 level of the underlying index between the inception date and
the applicable valuation date. Additionally, if the level of the underlying
index 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 value of such index 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
Market and Volatility Risk: The prices of physical commodities, including the
commodities underlying the index components, can fluctuate widely due to
supply and demand disruptions in major producing or consuming regions.
Additionally, the market value of the ETNs may be influenced by many
unpredictable factors including changes in supply and demand relationships,
governmental policies and economic events.
A Trading Market for the ETNs May Not Develop: Although the ETNs are listed 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
No Interest Payments from the ETNs: You may not receive any interest payments
on the ETNs.
Restrictions on the Minimum Number of ETNs and Date Restrictions for
Redemptions: You must redeem at least 50,000 ETNs (30,000 ETNs if the Proposed
Amendment is accepted for an issue) of the same issue 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.
Uncertain Tax Treatment: Significant aspects of the tax treatment of the ETNs
are uncertain. You should consult your own tax advisor about your own tax
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.iPathETN.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 1-877-764-7284, or you mayrequest a copy fromany
otherdealer participating in the offering.
BlackRock Investments, LLC, assists in the promotion of the ETNs.
The ETNs may be sold throughout the day on the exchange through any brokerage
account. There are restrictions on the minimum number of ETNs you may redeem
directly with the issuer as specified in the applicable prospectus.
Commissions may apply and there are tax consequences in the event of sale,
redemption or maturity of ETNs. Sales in the secondary market may result in
The Dow Jones-UBS Commodity Indexes^SM are a joint product of DJI Opco, LLC
(“DJI Opco”), a subsidiary of S&P Dow Jones Indices LLC (“SPDJI”), and UBS
Securities LLC (“UBS Securities”). Dow Jones^®, “Dow Jones-UBS Coffee Subindex
Total Return^SM”, and “DJ-UBSCI^SM” are servicemarks and/or trademarks of Dow
Jones Trademark Holdings, LLC (“Dow Jones”) and “UBS” is a registered
trademark of UBS AG (“UBS AG”). These servicemarks and/or trademarks have been
licensed to DJI Opco and sublicensed to Barclays Bank PLC for certain
purposes. The Dow Jones-UBS Commodity Indexes^SM (the “Commodity Indices”)
have been licensed to Barclays Bank PLC for certain purposes. The ETNs based
on the indices are not sponsored, endorsed, sold or promoted by Dow Jones,
UBS, UBS AG, Dow Jones Opco or any of their respective subsidiaries or
affiliates, and none of Dow Jones, UBS, UBS AG, Dow Jones Opco or any of their
respective affiliates, makes any representation or warranty, express or
implied, to the owners of or counterparts to the ETNs based on the indices or
any member of the public regarding the advisability of investing in securities
or commodities generally or in the ETNs based on any of the indices
© 2014 Barclays Bank PLC. All rights reserved. iPath, iPath ETNs and the iPath
logo are registered trademarks of Barclays Bank PLC. 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 is a major global financial services provider engaged in personal
banking, credit cards, corporate and investment banking and wealth and
investment management with an extensive international presence in Europe, the
Americas, Africa and Asia. Barclays’ purpose is to help people achieve their
ambitions – in the right way. With over 300 years of history and expertise in
banking, Barclays operates in over 50 countries and employs approximately
140,000 people. Barclays moves, lends, invests and protects money for
customers and clients worldwide. Barclays offers premier investment banking
products and services to its clients through Barclays Bank PLC. For more
information, visit www.barclays.com
Barclays Bank PLC
Mark Lane, +1-212-412-1413
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