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Barclays Bank PLC Announces Purchase Price for Each Formula Price Series of its 24 Cash Tender Offers and Consent Solicitations

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Barclays Bank PLC announces the purchase price of each Formula Price Series in connection with its cash tender offers for exchange-traded notes, with a specified premium to the Closing Indicative Note Value of each Series. The Offers and Consent Solicitations will expire on March 6, 2024, with the Purchase Price per Note available for each Series. The Issuer reserves the right to withdraw, terminate, extend, or amend the Offer and Consent Solicitation for any Series independently.
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The announcement by Barclays Bank PLC regarding the cash tender offers and consent solicitations for its exchange-traded notes (ETNs) is a strategic financial move that warrants a thorough analysis. The purchase price determination for each ETN series, based on a formula premium to the closing indicative note value, is a critical element for current note holders and potential investors. This premium represents an incentive for note holders to participate in the offer before the expiration deadline.

From a financial perspective, the offer price above the market value could indicate Barclays' intention to restructure its debt or manage its ETN offerings more efficiently. It is essential to assess the liquidity position of Barclays and the potential impact on its balance sheet. The transaction could affect the bank's leverage ratios and interest expenses, depending on the volume of notes tendered and the premiums paid. Market participants should evaluate the implications for Barclays' credit risk profile and the broader ETN market.

Furthermore, the independent nature of each series' offer suggests a targeted approach, possibly reflecting the varying market demand and risk associated with each underlying commodity. Investors should be aware of the nuances of commodity-linked ETNs and the factors influencing their indicative values, such as commodity price volatility and the creditworthiness of the issuer.

The ETN tender offer by Barclays could signal broader market trends in the structured products space. Exchange-traded notes are debt instruments that track the performance of a market index or other benchmark and their appeal lies in their ability to provide exposure to non-traditional asset classes, such as commodities, without direct investment.

Investors should consider the historical performance of the specific ETNs in question, the current market conditions for the commodities they track and the overall investor sentiment towards such financial products. The response to the tender offer might also reflect the market's valuation of these ETNs relative to their perceived risk and return profiles.

It's also important to note the timing of the announcement and its alignment with market cycles. For example, if the commodities associated with these ETNs are expected to perform well, the premium offered might be attractive to investors looking to cash out at a perceived market high. Conversely, if the outlook is bearish, investors might view the tender offer as an opportunity to exit positions that may otherwise depreciate.

The legal intricacies of the tender offers and consent solicitations are of paramount importance. The amendment of certain provisions of the notes, as proposed by Barclays, could have significant implications for the rights and obligations of the note holders. It is crucial to understand the specific amendments being proposed and their potential impact on the note holders' future cash flows and legal recourse.

In addition, Barclays' conditional approach to each series, with the possibility of extension, termination, or amendment, introduces an element of uncertainty that must be factored into the decision-making process of investors. The adherence to applicable laws and regulations, including securities law and contractual obligations, is essential to ensure the legitimacy and smooth execution of the offers.

Stakeholders should carefully review the Statement and any related documentation to fully grasp the legal ramifications. The transparency of the process and the communication of any changes will be critical in maintaining investor confidence and ensuring that the offers are conducted in a fair and equitable manner.

NEW YORK--(BUSINESS WIRE)-- Barclays Bank PLC (the “Issuer”) announced today that it has determined the purchase price of each Formula Price Series (as defined below) 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 the twenty-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, subject to the conditions and restrictions set out in the Offer to Purchase and Consent Solicitation Statement dated December 7, 2023 (as amended or supplemented from time to time, the “Statement”). Capitalized terms used and not otherwise defined in this announcement have the meanings given in the Statement.

For each Series included in the table below (each, a “Formula Price Series”), the Purchase Price per Note will be the specified dollar amount set forth in the table below, reflecting the specified premium to the Closing Indicative Note Value of that Series on March 6, 2024 (the “Expiration Date”).

Title of Note

 

Bloomberg
Ticker

CUSIP / ISIN

Formula Premium
Percentage

Purchase Price per
Note

Closing Indicative Note
Value on March 6,
2024

iPath® Bloomberg Cotton Subindex Total ReturnSM ETN

BALTF

06739H271 /
US06739H2711

3%

$ 80.5164

$ 78.1713

iPath® Bloomberg Coffee Subindex Total ReturnSM ETN

JJOFF

06739H297 /
US06739H2976

3%

$ 19.6003

$ 19.0294

iPath® Bloomberg Tin Subindex Total ReturnSM ETN

JJTFF

06739H198 /
US06739H1986

3%

$ 88.6873

$ 86.1042

iPath® Bloomberg Sugar Subindex Total ReturnSM ETN

SGGFF

06739H214 /
US06739H2141

3%

$ 47.8063

$ 46.4139

The Purchase Price per Note for each Fixed Price Series will be the previously announced dollar amount specified in the Statement.

The Purchase Price per Note for each Formula Price Series and each Fixed Price Series will also be available at https://ipathetn.barclays/static/tenderoffers.app.

The Offers and Consent Solicitations will expire at 11:59 p.m., New York City time, on March 6, 2024 (the “Expiration Deadline”), unless the Offer with respect to any Series is extended or early terminated by the Issuer, in which case notification to that effect will be given by or on behalf of the Issuer in accordance with the methods set out in the Statement. To receive the Purchase Price per Note for any Series, Noteholders must validly tender and not withdraw their Notes of that Series prior to the Expiration Deadline.

The Issuer intends to announce, inter alia, its decision whether to accept valid tenders of Notes of any Series for purchase pursuant to the Offers in an announcement no later than one business day following the Expiration Deadline.

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 or exchange rate, as applicable (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 funds. The ETNs can therefore experience greater volatility than other 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 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. Sales in the secondary market may result in significant losses.

© 2024 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

 

Tim Owen

+1 212 526 5103

tim.owen@barclays.com

Source: Barclays Bank PLC

FAQ

What is the Purchase Price per Note for the iPath® Bloomberg Cotton Subindex Total ReturnSM ETN (BALTF)?

The Purchase Price per Note for BALTF is $80.5164 with a 3% premium to the Closing Indicative Note Value.

When do the Offers and Consent Solicitations expire?

The Offers and Consent Solicitations will expire at 11:59 p.m., New York City time, on March 6, 2024.

Where can Noteholders find the Purchase Price per Note for each Series?

The Purchase Price per Note for each Series is available at https://ipathetn.barclays/static/tenderoffers.app.

Can the Issuer extend or terminate the Offer and Consent Solicitation for any Series?

Yes, the Issuer reserves the right to extend or terminate the Offer and Consent Solicitation for any Series independently.

What is the deadline for Noteholders to tender their Notes?

Noteholders must tender and not withdraw their Notes of any Series prior to the Expiration Deadline on March 6, 2024.

How will the Issuer announce its decision on accepting valid tenders of Notes?

The Issuer intends to announce its decision no later than one business day following the Expiration Deadline.

Are the Offers and Consent Solicitations for each Series independent of each other?

Yes, each Series is treated independently, and the Issuer can withdraw or terminate Offers for any Series without affecting others.

Where can Noteholders find more information on the Offers and Consent Solicitations?

Complete terms and conditions are available in the Statement at http://ipathetn.barclays/static/tenderoffers.app.

Barclays PLC

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