Barclays Bank PLC Amends Purchase Price of Certain Cash Tender Offers and Consent Solicitations

Rhea-AI Summary

Barclays Bank PLC has announced amendments to the purchase price for certain series of its exchange-traded notes (ETNs) in connection with its previously announced cash tender offers and consent solicitations. The amended purchase prices affect two ETN series: the iPath® CBOE S&P 500 BuyWrite IndexSM ETN (BWVTF) with a new purchase price of $130.00, and the iPath® Bloomberg Energy Subindex Total ReturnSM ETN (JJETF) with a new price of $7.00.

These prices represent a premium to the Closing Indicative Note Values as of January 13, 2025. The expiration date remains January 29, 2025, with payment scheduled for February 5, 2025. Noteholders who have already tendered their notes are not required to take any further action, and the amended prices will apply to their submissions.

Positive

• Purchase prices offer premium over Closing Indicative Note Values
• Previously tendered notes automatically qualify for amended prices

Negative

• Purchase price may be lower than trading price on Expiration Date
• Purchase price could be significantly less than Closing Indicative Note Value if index levels increase

Insights

Financial Markets Expert

This tender offer amendment by Barclays represents a strategic move to restructure their ETN portfolio, with significant implications for both the bank and noteholders. The adjusted purchase prices of $130.00 for the CBOE S&P 500 BuyWrite Index ETN and $7.00 for the Bloomberg Energy Subindex Total Return ETN reflect premiums of approximately 10% and 19% respectively over their closing indicative values.

The pricing strategy reveals Barclays' eagerness to remove these products from their books, likely driven by regulatory capital considerations and portfolio optimization efforts. For investors, while the premium offers an immediate arbitrage opportunity, the fixed purchase price creates a potential disconnect from the underlying index movements until the January 29 expiration date, introducing both opportunities and risks.

The tender offer's structure, allowing for independent handling of different series, gives Barclays significant flexibility in managing their ETN exposure while potentially minimizing market impact. This approach aligns with broader industry trends of major banks streamlining their structured products offerings.

ETF/ETN Specialist

The amended tender offer highlights a critical aspect of ETN market dynamics. The fixed purchase price mechanism, notably higher than current indicative values but potentially lower than future market prices, creates an interesting arbitrage scenario. For the CBOE S&P 500 BuyWrite ETN (BWVTF), the $130.00 offer versus $118.11 indicative value presents an immediate 10% premium, but also caps potential upside if the underlying index rallies significantly before expiration.

Most notably, this tender offer structure differs from typical ETN redemptions where prices track the underlying index continuously. The fixed price approach transfers market risk from Barclays to noteholders during the tender period, as holders must decide whether to lock in the premium now or maintain exposure to potential market movements. This nuanced pricing mechanism demonstrates sophisticated financial engineering aimed at balancing issuer costs with investor incentives.

NEW YORK--(BUSINESS WIRE)-- Barclays Bank PLC (the “Issuer”) announced today that, in connection with its previously announced cash tender offers (each, an “Offer”) to purchase any and all of its outstanding exchange-traded notes (the “Notes” or the “ETNs”) of four separate series (each, a “Series”) and the solicitation of consents (each, a “Consent Solicitation”) from holders of the Notes (the “Noteholders”) to amend certain provisions of the Notes with respect to each Series, it has amended the Purchase Price per Note applicable to certain Series.

Each Offer and Consent Solicitation is subject to the conditions and restrictions set out in the Initial Statement, as supplemented by Supplement No. 12 dated January 13, 2025 (as so supplemented, and as it may be further supplemented or amended from time to time, the “Statement”). The “Initial Statement” is the Offer to Purchase and Consent Solicitation Statement dated December 7, 2023, as supplemented by Supplement No. 1 dated March 7, 2024, Supplement No. 2 dated March 20, 2024, Supplement No. 3 dated April 4, 2024, Supplement No. 4 dated May 20, 2024, Supplement No. 5 dated June 5, 2024, Supplement No. 6 dated July 16, 2024, Supplement No. 7 dated July 31, 2024, Supplement No. 8 dated September 10, 2024, Supplement No. 9 dated September 25, 2024, Supplement No. 10 dated November 4, 2024 and Supplement No. 11 dated November 20, 2024. Capitalized terms used and not otherwise defined in this announcement have the meanings given in the Statement.

Except as otherwise set forth below, the terms and conditions of the Offers and Consent Solicitations as set forth in the Initial Statement will continue to apply.

Purchase Price Amendments

For each Series listed in the table below, the Purchase Price per Note has been amended from the value specified in the Initial Statement. The specified Purchase Price per Note for each Series listed below reflects a premium to the Closing Indicative Note Value of that Series on January 13, 2025. The Purchase Price may be lower than the trading price of the Notes of that Series on the Expiration Date. The Expiration Date for each Series is January 29, 2025 and has not changed from the date specified in the Initial Statement.

Title of Note	Bloomberg Ticker	CUSIP / ISIN	Purchase Price per Note*	Closing Indicative Note Value on January 13, 2025
iPath® CBOE S&P 500 BuyWrite IndexSM ETN	BWVTF	06739F135 / GB00B1WL1590	$130.00	$118.11
iPath® Bloomberg Energy Subindex Total ReturnSM ETN	JJETF	06739H750 / US06739H7504	$7.00	$5.90
* The Purchase Price for each Series is a set dollar amount and may be lower than the Closing Indicative Note Value of that Series on the Expiration Date.

If a Noteholder has already validly tendered and not withdrawn its Notes of a Series pursuant to an Offer set forth in the Initial Statement, such Noteholder is not required to take any further action with respect to such Notes and such tender constitutes a valid tender for purposes of the relevant Offer, as amended hereby. Any amendment to the Purchase Price per Note set forth above will be applicable to such Notes. The Purchase Price is payable on February 5, 2025, unless the relevant Offer is further extended or early terminated by the Issuer.

Because the Closing Indicative Note Value for each Series is calculated based on the applicable Closing Index Level, if the applicable Closing Index Level has increased as of the Expiration Date, the Purchase Price of that Series may be significantly less than the Closing Indicative Note Value on the Expiration Date. In addition, the Notes of any Series may trade at a substantial premium to or discount from the applicable Closing Indicative Note Value. Accordingly, the Purchase Price for any Series may be lower than the trading price of the Notes of that Series on the Expiration Date.

Subject to applicable law, the Offer and Consent Solicitation for each Series is being made independently of the Offer and Consent Solicitation for each other Series, and the Issuer reserves the right, subject to applicable law, to withdraw or terminate the Offer and Consent Solicitation for any Series if any of the conditions described in the Statement have not been satisfied or waived without also withdrawing or terminating any other Offer or Consent Solicitation. In addition, the Issuer reserves the right, subject to applicable law, to extend or amend the Offer and Consent Solicitation for any Series at any time and for any reason without also extending or amending any other Offer or Consent Solicitation.

For Further Information

A complete description of the terms and conditions of the Offers is set out in the Statement. Copies of the Statement are available at http://ipathetn.barclays/static/tenderoffers.app. Further details about the transaction can be obtained from:

The Dealer Manager
Barclays Capital Inc.
745 Seventh Avenue
New York, New York 10019, United States
Telephone: +1 212-528-7990
Attn: Barclays ETN Desk
Email: etndesk@barclays.com

The Tender Agent
The Bank of New York Mellon
160 Queen Victoria Street
London EC4V 4LA
United Kingdom
Attn: Debt Restructuring Services
Telephone: +44 1202 689644
Email: debtrestructuring@bnymellon.com

DISCLAIMER

This announcement must be read in conjunction with the Statement. No offer or invitation to acquire or exchange any securities is being made pursuant to this announcement. This announcement and the Statement contain important information, which must be read carefully before any decision is made with respect to the Offers and Consent Solicitations. If any Noteholder is in any doubt as to the action it should take, it is recommended to seek its own legal, tax and financial advice, including as to any tax consequences, from its stockbroker, bank manager, lawyer, accountant or other independent financial adviser. Any individual or company whose Notes are held on its behalf by a broker, dealer, bank, custodian, trust company or other nominee must contact such entity if it wishes to participate in an Offer and Consent Solicitation. None of the Issuer, the Dealer Manager or the Tender Agent (or any person who controls, or is a director, officer, employee or agent of such persons, or any affiliate of such persons) makes any recommendation as to whether Noteholders should participate in any Offer and Consent Solicitation.

General

Neither this announcement, the Statement nor the electronic transmission thereof constitutes an offer to buy or the solicitation of an offer to sell Notes (and tenders of Notes for purchase pursuant to the Offers will not be accepted from Noteholders) in any circumstances in which such Offer or solicitation is unlawful. In those jurisdictions where the Notes, blue sky or other laws require the Offers to be made by a licensed broker or dealer and the Dealer Manager or any of its affiliates is such a licensed broker or dealer in any such jurisdiction, the Offers shall be deemed to be made by such Dealer Manager or such affiliate, as the case may be, on behalf of the Issuer in such jurisdiction. None of the Issuer, the Dealer Manager or the Tender Agent (or any director, officer, employee, agent or affiliate of, any such person) makes any recommendation as to whether Noteholders should tender Notes in the Offers or Consent Solicitations. In addition, each Noteholder participating in an Offer will be deemed to give certain representations in respect of the other jurisdictions referred to below and generally as set out in the Statement under the section entitled “Procedures for Participating in the Offer.” Any tender of Notes for purchase pursuant to an Offer from a Noteholder that is unable to make these representations will not be accepted.

About Barclays

Barclays is a British universal bank. We are diversified by business, by different types of customers and clients, and by geography. Our businesses include consumer banking and payments operations around the world, as well as a full-service corporate and investment bank. For further information about Barclays, please visit our website www.barclays.com.

Selected Risk Considerations

An investment in the ETNs described herein 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 change in the level of the underlying index (the “index”) between the inception date and the applicable valuation date. Additionally, if the level of the 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 level of such index has increased or decreased, as the case may be. 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 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, if Barclays Bank PLC were to default on its obligations, you may not receive any amounts owed to you under the terms of the ETNs.

Market and Volatility Risk: The market value of the ETNs 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 ETNs in the secondary market. Factors that may influence the market value of the ETNs include prevailing market prices of the commodity markets, the U.S. stock markets or the U.S. Treasury market, the index components included in the underlying index, and prevailing market prices of options on such index or any other financial instruments related to such index; and supply and demand for the ETNs, including economic, financial, political, regulatory, geographical or judicial events that affect the level of such index or other financial instruments related to such index.

Concentration Risk: Because the ETNs are linked to an index composed of futures contracts on a single commodity or in only one commodity sector, the ETNs are less diversified than other exchange traded notes or funds. The ETNs can therefore experience greater volatility than other exchange traded notes, funds or investments.

A Trading Market for the ETNs May Not Develop: The ETNs are not listed on any securities exchange. A trading market for the ETNs may not develop and the liquidity of the ETNs may be limited.

No Interest Payments from the ETNs: You may not receive any interest payments on the ETNs.

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 situation.

The ETNs may be sold throughout the day through certain brokerage accounts. 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 significant losses.

© 2025 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

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250113053256/en/

Press:

Ann Thielke

+1 212 526 1472

Ann.Thielke@barclays.com

Source: Barclays Bank PLC

FAQ

What are the new purchase prices for Barclays ETNs (BCS) in the tender offer?

The new purchase prices are $130.00 for iPath® CBOE S&P 500 BuyWrite IndexSM ETN (BWVTF) and $7.00 for iPath® Bloomberg Energy Subindex Total ReturnSM ETN (JJETF).

When is the expiration date for Barclays (BCS) ETN tender offer?

The expiration date for the tender offer is January 29, 2025.

When will Barclays (BCS) pay for the tendered ETNs?

The purchase price is payable on February 5, 2025, unless the offer is extended or terminated early.

Do existing Barclays (BCS) ETN holders need to take action after the price amendment?

No, noteholders who have already validly tendered their notes do not need to take any further action; the amended prices will automatically apply to their submission.