Barclays Bank PLC Updates Announcement of 24 Cash Tender Offers and Consent Solicitations

Rhea-AI Summary

Barclays Bank PLC announces results of cash tender offers and consent solicitations for exchange-traded notes. The Offer and Consent Solicitation have expired for certain series and extended for others, with amended purchase prices. Noteholders will receive the Purchase Price on the Settlement Date. The Issuer intends to effectuate the Proposed Amendment for expired series promptly after the Expiration Date.

Insights

Financial Analyst

An analysis of Barclays Bank PLC's tender offers and consent solicitations reveals a strategic maneuver potentially aimed at managing the bank's liabilities and optimizing its capital structure. This move could have implications for the bank's financial health and creditworthiness, which are critical factors that credit rating agencies and investors closely monitor.

The tender offers allow the bank to repurchase outstanding exchange-traded notes (ETNs) before maturity, possibly at a price favorable to the bank. This could reduce interest expenses and improve debt ratios, signaling financial prudence to stakeholders. However, the repurchase could also impact the liquidity of these ETNs in the market, potentially affecting investors holding them for diversification or hedging purposes.

Furthermore, the consent solicitations to amend certain provisions of the ETNs suggest a proactive approach to covenant management. The amendments could provide Barclays with greater flexibility in managing these financial instruments, but the implications for note holders depend on the specific nature of the proposed changes.

Market Research Analyst

The tender offer announcement by Barclays can influence market perceptions and the trading dynamics of the affected ETNs. The tender offer prices, particularly for fixed price series, are set above the closing indicative note value as of a recent date, which could be enticing for investors seeking immediate liquidity, especially if they anticipate the value of the underlying index to remain stagnant or decline.

However, the market's reaction to such offers can be mixed. While some investors may view the premium as an exit opportunity, others might speculate on potential future appreciation of the underlying assets, choosing to hold their positions. This can affect trading volumes and the bid-ask spread of the ETNs in the secondary market.

The extension of the expiration deadline for certain series and the amendment of purchase prices reflect the dynamic nature of these offers. Investors and market participants must stay informed about such changes, as they can influence investment strategies and decisions regarding the ETNs in question.

Legal Expert

The legal implications of the consent solicitations are particularly noteworthy. Obtaining the requisite consents for the proposed amendments to the notes could alter the terms of the agreement between the issuer and the note holders. This process requires a thorough understanding of the rights being amended and the potential legal ramifications for both parties.

For example, amendments might affect the redemption features, covenants, or interest rate calculations of the ETNs, which could have significant consequences for the rights and expectations of the note holders. It is crucial for note holders to carefully review the proposed amendments and consider their legal rights before providing consent.

Additionally, the issuer's ability to redeem outstanding notes after the proposed amendments take effect could alter the investment's return profile. Note holders should be aware of the legal framework governing such redemptions, including any notice requirements and the calculation of the redemption price.

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 the twenty-four separate series listed in tables below (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:

• determined the results of the Offer and Consent Solicitation for each Series included in Table 1 below (each, an “Expired Series”); and
• extended the expiration deadline for the Offer and Consent Solicitation with respect to each Series included in Table 2 below (each, an “Extended Series”) and amended the purchase price per Note (the “Purchase Price”) for certain Extended Series as set forth in Table 2 below.

Each Offer and Consent Solicitation is subject to the conditions and restrictions set out in the Offer to Purchase and Consent Solicitation Statement dated December 7, 2023 (the “Initial Statement”), as supplemented by Supplement No. 1 dated March 7, 2024 (as so supplemented, and as it may be further supplemented or amended from time to time, the “Statement”). Capitalized terms used and not otherwise defined in this announcement have the meanings given in the Statement.

Expired Series

The Offer and Consent Solicitation for each Expired Series expired at 11:59 p.m., New York City time, on March 6, 2024 (with respect to each Expired Series, the “Expiration Deadline”). For each Expired Series, the Issuer has received and accepted the specified number of Notes validly tendered and not validly withdrawn prior to the Expiration Deadline. All conditions to the Offer for each Expired Series were deemed satisfied or waived by the Issuer as of the Expiration Deadline. The aggregate purchase price of the Notes for each Series accepted by the Issuer will be the specified dollar amount set forth in Table 1 below, reflecting the previously announced Purchase Price per Note. On March 13, 2024 (the “Settlement Date”), Noteholders whose Notes have been accepted for purchase pursuant to the relevant Offer will receive the previously announced applicable Purchase Price. No Offer or Consent Solicitation is currently open in respect of the Expired Series.

Table 1: Expired Series

Title of Note	Bloomberg Ticker	CUSIP / ISIN	Type of Series	Purchase Price per Note	Number of Notes Tendered	Aggregate Purchase Price
iPath® Bloomberg Cotton Subindex Total ReturnSM ETN	BALTF	06739H271 / US06739H2711	Formula Price Series	$80.5164	18,192	$1,464,754.35
iPath® EUR/USD Exchange Rate ETN	EROTF	06739F184 / GB00B1WPBD95	Fixed Price Series	$40.00	8,075	$323,000.00
iPath® Optimized Currency Carry ETN	ICITF	06739H412 / US06739H4121	Fixed Price Series	$44.00	4,339	$190,916.00
iPath® Bloomberg Coffee Subindex Total ReturnSM ETN	JJOFF	06739H297 / US06739H2976	Formula Price Series	$19.6003	401,378	$7,867,129.21
iPath® Bloomberg Tin Subindex Total ReturnSM ETN	JJTFF	06739H198 / US06739H1986	Formula Price Series	$88.6873	4,299	$381,266.70
iPath® Bloomberg Aluminum Subindex Total ReturnSM ETN	JJUFF	06739H321 / US06739H3214	Fixed Price Series	$17.00	10,685	$181,645.00
iPath® Asian & Gulf Currency Revaluation ETN	PGDDF	06739H420 / US06739H4204	Fixed Price Series	$50.00	653	$32,650.00
iPath® Bloomberg Sugar Subindex Total ReturnSM ETN	SGGFF	06739H214 / US06739H2141	Formula Price Series	$47.8063	89,614	$4,284,113.77

Pursuant to the Consent Solicitation for each Expired Series, the Issuer has obtained the requisite consents to the Proposed Amendment, as described in the Initial Statement, with that respect to that Series.

Notes purchased by the Issuer pursuant to the Offers with respect to the Expired Series will be cancelled on the Settlement Date. The Issuer currently intends to effectuate the Proposed Amendment for each Expired Series promptly after the Expiration Date and redeem all outstanding Notes at any time after the Proposed Amendment becomes effective with respect to that Series. As described in the Initial Statement, the Issuer will publicly announce any decision to redeem the outstanding Notes of any Expired Series by issuing a redemption notice. The payment upon redemption to Noteholders for an Expired Series may be greater than or less than the Purchase Price for that Series pursuant to the relevant Offer but will not include any premium payment or any amount in excess of the applicable Closing Indicative Note Value on the Valuation Date of such redemption.

Extended Series

The Offer and Consent Solicitation with respect to each Extended Series were previously scheduled to expire at 11:59 p.m., New York City time, on March 6, 2024 and will instead expire at 11:59 p.m., New York City time, on April 3, 2024 (with respect to each Extended Series, the “Expiration Deadline”), unless the Offer with respect to any Extended Series is further 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.

In addition, the Purchase Price per Note applicable to certain Extended Series has been amended. Any Purchase Price per Note that has been amended from the value specified in the Initial Statement is presented in boldface type in Table 2 below. The specified Purchase Price per Note for each Extended Series that is a Fixed Price Series reflects a premium to the Closing Indicative Note Value of that Series on March 6, 2024. The Purchase Price for a Fixed Price Series may be lower than the trading price of the Notes of that Series on the Expiration Date.

Table 2: Extended Series

Title of Note	Bloomberg Ticker	CUSIP / ISIN	Type of Series	Purchase Price per Note*	Closing Indicative Note Value on March 6, 2024	Number of Notes Tendered
iPath® GEMS Asia 8 ETN	AYTEF	06738G878 / US06738G8785	Fixed Price Series	$40.00	$36.56	496
iPath® CBOE S&P 500 BuyWrite IndexSM ETN	BWVTF	06739F135 / GB00B1WL1590	Fixed Price Series	$106.00	$101.38	1,886
iPath® Bloomberg Livestock Subindex Total ReturnSM ETN	COWTF	06739H743 / US06739H7439	Fixed Price Series	$21.00	$20.27	4,162
iPath® GBP/USD Exchange Rate ETN	GBBEF	06739F176 / GB00B1WPB621	Fixed Price Series	$36.00	$35.16	5,599
iPath® Global Carbon ETN	GRNTF	06739H164 / US06739H1648	Fixed Price Series	$82.00	$78.78	20,549
iPath® GEMS IndexTM ETN	JEMTF	06739H453 / US06739H4535	Fixed Price Series	$19.00	$16.49	1,177
iPath® Bloomberg Agriculture Subindex Total ReturnSM ETN	JJATF	06739H206 / US06739H2067	Fixed Price Series	$43.00	$41.70	41,021
iPath® Bloomberg Copper Subindex Total ReturnSM ETN	JJCTF	06739F101 / US06739F1012	Fixed Price Series	$45.00	$43.75	36,970
iPath® Bloomberg Energy Subindex Total ReturnSM ETN	JJETF	06739H750 / US06739H7504	Fixed Price Series	$6.00	$5.49	8,982
iPath® Bloomberg Grains Subindex Total ReturnSM ETN	JJGTF	06739H305 / US06739H3057	Fixed Price Series	$30.00	$29.01	158,723
iPath® Bloomberg Industrial Metals Subindex Total ReturnSM ETN	JJMTF	06738G407 / US06738G4073	Fixed Price Series	$35.00	$33.45	639
iPath® Bloomberg Nickel Subindex Total ReturnSM ETN	JJNTF	06739F119 / US06739F1194	Fixed Price Series	$22.50	$21.34	10,462
iPath® Bloomberg Precious Metals Subindex Total ReturnSM ETN	JJPFF	06739H248 / US06739H2489	Fixed Price Series	$90.00	$87.09	4,986
iPath® Bloomberg Softs Subindex Total ReturnSM ETN	JJSSF	06739H230 / US06739H2307	Fixed Price Series	$50.00	$47.62	182
iPath® JPY/USD Exchange Rate ETN	JYNFF	06739G851 / GB00B1WPB282	Fixed Price Series	$38.00	$35.48	40
iPath® Bloomberg Platinum Subindex Total ReturnSM ETN	PGMFF	06739H255 / US06739H2554	Fixed Price Series	$19.00	$17.91	26,102

* The Purchase Price for a Fixed Price 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 an Extended 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. As of 5:00 p.m., New York City time, on March 6, 2024, Noteholders have validly tendered the number of Notes specified in Table 2 above. Any amendment to the Purchase Price per Note set forth above will be applicable to such Notes and may result in a lower Purchase Price than would have resulted under the terms set forth in the Initial Statement. The Purchase Price is payable on April 10, 2024, unless the relevant Offer is further extended or early terminated by the Issuer.

Because the Closing Indicative Note Value for each Fixed Price 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 Fixed Price Series may trade at a substantial premium to or discount from the applicable Closing Indicative Note Value. Accordingly, the Purchase Price for any Fixed Price Series may be lower than the trading price of the Notes of that Series on the Expiration Date. If on or prior to the Expiration Date, the applicable Closing Index Level with respect to any Fixed Price Series set forth in Table 2 above has increased or decreased from its level on March 6, 2024, the Issuer may amend the Offer and Consent Solicitation with respect to that Series, including by increasing or decreasing the Purchase Price of that Series, or in its sole and absolute discretion, to further extend, withdraw or terminate such Offer or Consent Solicitation.

On each Trading Day while an Offer remains open, the indicative Purchase Price for the relevant Series, as well as the Closing Index Level and the Closing Indicative Note Value for that Trading Day for the relevant Series, will be published for that Series by 5:00 p.m., New York City time, at http://ipathetn.barclays/static/tenderoffers.app. In the event that publication of the Closing Index Level for any Series on any Trading Day is delayed, the Issuer will publish such information as soon as practicable following the publication of that Closing Index Level.

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

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240306505418/en/

Tim Owen

+1 212 526 5103

tim.owen@barclays.com

Source: Barclays Bank PLC

FAQ

What did Barclays Bank PLC announce regarding their exchange-traded notes?

Barclays Bank PLC announced the results of their cash tender offers and consent solicitations for their exchange-traded notes.

When did the Offer and Consent Solicitation expire for the Expired Series?

The Offer and Consent Solicitation for each Expired Series expired at 11:59 p.m., New York City time, on March 6, 2024.

When will Noteholders receive the Purchase Price for the accepted Notes?

Noteholders whose Notes have been accepted for purchase pursuant to the relevant Offer will receive the Purchase Price on the Settlement Date, which is March 13, 2024.

What is the intention of the Issuer regarding the Proposed Amendment for the expired series?

The Issuer intends to effectuate the Proposed Amendment for each expired series promptly after the Expiration Date and redeem all outstanding Notes at any time after the Proposed Amendment becomes effective.

When will the Offer and Consent Solicitation with respect to the Extended Series expire?

The Offer and Consent Solicitation with respect to each Extended Series will expire at 11:59 p.m., New York City time, on April 3, 2024.