Barclays gets consents for four of 22 series of iPath commodities ETNs

By Toni Weeks

San Luis Obispo, April 1 – Barclays Bank plc said it received enough consents to amend four series of iPath commodities exchange-traded notes, according to a press release.

The remaining 18 series of iPath commodities ETNs for which Barclays solicited consents did not receive the requisite consents from holders of a majority of principal amount.

The four ETN series, with their NYSE Arca ticker symbols, that received holder approval are

• iPath Bloomberg Commodity Index Total Return ETNs (DJP);

• iPath Bloomberg Cocoa Subindex Total Return ETNs (NIB);

• iPath Bloomberg Lead Subindex Total Return ETNs (LD); and

• iPath S&P GSCI Total Return Index ETNs (GSP).

As already noted, Barclays is soliciting consents separately, and for each set of ETNs under the consent solicitation, the proposed amendments would give Barclays the right to redeem in full, but not in part, the outstanding issue prior to maturity and the right to initiate a split or reverse split of that issue.

The amendments would also reduce the investor fee during the period from the effective time of the amendment to the maturity date. The reduced investor fee would be an amount equal to 0.7% per year 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 year times the principal amount times the relevant index factor, calculated on a daily basis.

In addition, Barclays is seeking to reduce the minimum number of ETNs required under the put option to 30,000 ETNs from 50,000 ETNs.

The proposed amendments for each issue of ETNs cannot be partitioned and will take effect as a single proposal if all conditions are met. Otherwise, none of the amendments listed above will become effective for that particular issue.

The consent solicitation ended at 5 p.m. ET on March 31, extended from Jan. 30. Before that, it had been extended from Nov. 28, Sept. 30, July 31, May 31 and March 31, 2014. The solicitation was originally set to end on Jan. 31, 2014.

Barclays said that March 31 is the “effective time” for the consents received, and it plans to file amended pricing supplements reflecting the proposed amendments for each series of the four series of ETNS within 30 days of the effective time.

The 18 series of ETNs that did not receive enough consents are as follows:

• iPath Bloomberg Livestock Subindex Total Return ETNs (COW);

• iPath Bloomberg Agriculture Subindex Total Return ETNs (JJA);

• iPath Bloomberg Softs Subindex Total Return ETNs (JJS);

• iPath Bloomberg Grains Subindex Total Return ETNs (JJG);

• iPath Bloomberg Energy Subindex Total Return ETNs (JJE);

• iPath Bloomberg Industrial Metals Subindex Total Return ETNs (JJM);

• iPath Bloomberg Precious Metals Subindex Total Return ETNs (JJP);

• iPath Bloomberg Cotton Subindex Total Return ETNs (BAL);

• iPath Bloomberg Coffee Subindex Total Return ETNs (JO);

• iPath Bloomberg Sugar Subindex Total Return ETNs (SGG);

• iPath Bloomberg Copper Subindex Total Return ETNs (JJC);

• iPath Bloomberg Nickel Subindex Total Return ETNs (JJN);

• iPath Bloomberg Tin Subindex Total Return ETNs (JJT);

• iPath Bloomberg Aluminum Subindex Total Return ETNs (JJU);

• iPath Bloomberg Platinum Subindex Total Return ETNs (PGM);

• iPath Bloomberg Natural Gas Subindex Total Return ETNs (GAZ);

• iPath S&P GSCI Crude Oil Total Return Index ETNs (OIL); and

• iPath Global Carbon ETN (GRN).

Holders needed to be of record as of 5 p.m. ET on Jan. 28, 2014 for the Coffee ETNs and Nov. 8, 2013 for all others. The solicitation began on Nov. 19, 2013.

Broadridge Financial Solutions, Inc. (attn.: Barclays commodities consent solicitation, 855 601-2252) was the solicitation agent and tabulation agent.

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