By Angela McDaniels
Tacoma, Wash., Aug. 26 – Barclays Bank plc will issue an additional $150 million principal amount of iPath S&P MLP exchange-traded notes due Dec. 15, 2042 linked to the S&P MLP index on Aug. 27, according to a 424B2 filing with the Securities and Exchange Commission.
The additional notes have a market price of $208.8 million based on $34.80 per ETN, which is the average of the high and low prices of the ETNs on Aug. 25.
Barclays issued $250 million principal amount of the notes on Jan. 8, 2013, $100 million principal amount on March 22, 2013 and $150 million principal amount July 29. The latest $150 million will bring the total issue size to $650 million principal amount.
The index provides exposure to leading partnerships that trade on major U.S. exchanges and are classified in the GICS Energy Sector and GICS Gas Utilities Industry according to the Global Industry Classification Standard. It includes both master limited partnerships and publicly traded limited liability companies that have a similar legal structure to MLPs and share the same tax benefits as MLPs.
Coupon
The notes pay a variable coupon each quarter equal to the accrued dividend minus the accrued investor fee.
The accrued divided on the inception date was zero. On subsequent days, it equals the accrued dividend as of the preceding day plus the dollar dividend value on that day minus the coupon adjustment dividend amount on that day.
The dollar dividend value on any day is the index dividend on that day divided by the VWAP factor. The VWAP factor, 85.7984, is the initial VWAP level of 2,144.96 divided by the principal amount per ETN.
The index dividend on any day represents the aggregate cash value of distributions that a hypothetical person holding index constituents in proportion to the weights of the index constituents would have been entitled to receive with respect to any index constituent for those cash distributions whose “ex-dividend date” occurs on that calendar day.
On any calendar day that is not a coupon ex-date, the coupon adjustment dividend amount will equal zero. On any calendar day that is a coupon ex-date, the coupon adjustment dividend amount will equal the accrued dividend on the coupon valuation date immediately preceding that coupon ex-date.
The accrued investor fee on the inception date was zero. On subsequent days, it equals the accrued investor fee as of the preceding day plus the daily fee value on that day minus the coupon adjustment fee amount on that calendar day.
The daily fee value is equal to the product of (a) the closing VWAP level on that day divided by the VWAP factor and (b) 0.8% divided by 365.
On any day that is not a coupon ex-date, the coupon adjustment fee amount is zero. On any day that is a coupon ex-date, it equals (a) the coupon adjustment dividend amount on that coupon ex-date if the coupon amount is zero or (b) the accrued investor fee on the coupon valuation date immediately preceding that coupon ex-date if the coupon amount is greater than zero.
Redemption amount
The payout at maturity will be the closing indicative value of the notes on Dec. 2, 2042.
The closing indicative value on any day is equal to the ETN current value on that day plus the accrued dividend minus the accrued investor fee.
The ETN current value on the inception date was $25; on each subsequent day, it equals the closing VWAP level on that day divided by the VWAP factor.
The notes are callable and putable, in the latter case subject to a minimum of 50,000 notes and a redemption charge of 0.125% of the closing indicative value.
The notes are listed on the NYSE Arca under the ticker symbol "IMLP."
Barclays is the agent.
| Issuer: | Barclays Bank plc
|
| Issue: | iPath S&P MLP ETNs
|
| Underlying index: | S&P MLP index
|
| Amount: | $650 million, increased from $250 million
|
| Maturity: | Dec. 15, 2042
|
| Coupon: | Amount based on distributions made by index constituents that may be zero, payable quarterly
|
| Face amount: | $25
|
| Payout at maturity: | Amount equal to closing indicative value of notes on Dec. 2, 2042
|
| Closing indicative value: | ETN current value plus accrued dividend minus accrued investor fee
|
| Call option: | At any time
|
| Put option: | Subject to minimum of 50,000 notes and redemption charge of 0.125% of closing indicative value
|
| Initial VWAP level: | 2,144.96
|
| Inception date: | Jan. 3, 2013
|
| Issue dates: | Jan. 8, 2013 for $250 million, March 22, 2013 for $100 million, July 29 for $150 million and Aug. 27 for $150 million
|
| Agent: | Barclays
|
| Fees: | None
|
| Listing: | NYSE Arca: IMLP
|
| Cusip: | 06742A750
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
