By Susanna Moon
Chicago, Dec. 6 - Barclays Bank plc now plans to price up to $125 million of 0% iPath exchange-traded notes linked to the Barclays Capital Natural Gas Seasonal TR index, according to a 424B3 filing with the Securities and Exchange Commission.
The issuer registered up to $50 million of the notes on April 20, 2011, and then another $25 million of the notes on Nov. 16 and most recently added another $50 million.
The payout at maturity will be the closing indicative value on the final valuation date for the ETNs. The closing indicative value will be par of $50 on the inception date. On each subsequent date, it will equal the closing indicative value on the preceding calendar day times the daily index factor minus fees.
The investor fee is initially zero and increases by an annualized rate of 0.75%.
The notes will be putable at any time, subject to a minimum of 50,000 securities. The payout will be calculated in the same way as payout at maturity.
The index reflects the returns available by maintaining a rolling position in Henry Hub Natural Gas futures contracts plus the interest that could be earned on cash collateral invested in Treasury bills. The index is composed of a single natural gas futures contract that, except during the roll period, is either the contract that is scheduled to expire in December of the relevant current calendar year, or the contract scheduled to expire in December of the immediately following calendar year. The index closes out its position in the natural gas futures contract that is scheduled to expire in December of the current calendar year in October and establishes a new position in the contract scheduled to expire in December of the next year.
Barclays will be the agent.
| Issuer: | Barclays Bank plc
|
| Issue: | iPath exchange-traded notes
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| Underlying index: | Barclays Capital Natural Gas Seasonal TR index
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| Amount: | $125 million, up from $50 million
|
| Maturity: | April 18, 2041
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| Coupon: | 0%
|
| Price: | Par of $50
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| Payout at maturity: | Closing indicative value on final valuation date minus investor fee of roughly 1.75% per year and futures execution cost of 0.1% per year
|
| Call: | Redeemable in whole at any time; subject to a minimum of 50,000 securities, putable at any time
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| Inception date: | April 20 for $50 million; Nov. 16 for $25 million; Dec. 4 for $50 million
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| Settlement date: | April 26 for $50 million; Nov. 20 for $25 million; Dec. 6 for $50 million
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| Agent: | Barclays
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| Fees: | None
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| Cusip: | 06740P239
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| Listing: | NYSE Arca: DCNG
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