Barclays to price exchange-traded notes linked to Dow Jones - AIG Livestock Total Return Sub-Index

By Jennifer Chiou

New York, Nov. 1 - Barclays Bank plc plans to price an issue of 0% iPath exchange-traded notes due 2036 linked to the Dow Jones - AIG Livestock Total Return Sub-Index, according to a 424B2 filing with the Securities and Exchange Commission.

The Dow Jones - AIG Livestock Total Return Sub-Index, which is a sub-index of the Dow Jones - AIG Commodity Index, is designed to be a diversified benchmark for livestock as an asset class and reflects the returns that are potentially available through an unleveraged investment in the futures contracts on livestock comprising the index plus the rate of interest that could be earned on cash collateral invested in specified Treasury Bills. The index is currently composed of three futures contracts on livestock traded on U.S. exchanges.

At maturity, investors will receive a cash payment equal to principal amount of notes times the index factor, which is the closing value of the index divided by the initial level on the final valuation date, minus the investor fee. The investor fee is calculated on a daily basis and equal to 0.75% per year times the principal amount of notes, multiplied by the index factor divided by 365.

Noteholders may redeem their securities on any redemption day - the third business day following a valuation date - during the life of the securities for a cash payment equal to the principal amount of notes times the index factor on the valuation date, minus the investor fee and less the redemption charge, which is a one-time fee of 0.00125 times the weekly redemption value. There is a minimum redemption requirement of 50,000 notes.

Barclays Capital will be the agent.

© 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.