Barclays to reverse split iPath S&P 500 VIX Short-Term Futures ETNs

By Angela McDaniels

Tacoma, Wash., Oct. 25 - Barclays Bank plc will implement a 1-for-4 reverse split of its iPath S&P 500 VIX Short-Term Futures exchange-traded notes due Jan. 30, 2019 linked to the S&P 500 VIX Short-Term Futures Index Total Return on Nov. 8, according to a company news release.

Barclays has the right to do a reverse split if the closing indicative value of the ETNs falls below $25.00. On Friday, the closing indicative value of the ETNs was $12.85.

The record date for the reverse split will be Nov. 7.

The closing indicative value of the ETNs on the record date will be multiplied by four to determine the reverse-split adjusted value of the ETNs.

The reverse split will be effective at the open of trading on Nov. 8, and the ETNs will begin trading on the NYSE Arca and the Toronto Stock Exchange on a reverse-split adjusted basis on that date.

The reverse-split adjusted ETNs will have a new Cusip number, but they will retain the same ticker symbols ("VXX" on the NYSE Arca and "VXX.U" on the Toronto Stock Exchange).

Investors who hold a number of ETNs that is not divisible by four will receive one reverse-split adjusted ETN for every four ETNs held on the record date and a cash payment for any odd number of ETNs remaining. The cash amount due on any partials will be determined on Nov. 15 based on the closing indicative value of the reverse-split adjusted ETNs on that date and will be paid on Nov. 20.

The current Cusip number is 06740C188.

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