Barclays set to reverse split iPath S&P 500 VIX Short-, Mid-Term ETNs

By Wendy Van Sickle

Columbus, Ohio, July 26 – Barclays Bank plc will implement a 1-for-4 reverse split for two series of its iPath exchange-traded notes on Aug. 9, according to a company news release.

The notes include the iPath S&P 500 VIX Short-Term Futures ETNs and the iPath S&P 500 VIX Mid-Term Futures ETNs.

Barclays has the right to do a reverse split if the closing indicative value of the ETNs falls below $25.00. On Tuesday, the closing indicative value of the short-term ETNs was $11.00 and that of the mid-term ETNs was $10.17.

The record date for the reverse split will be Aug. 8.

The closing indicative value of each series 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 Aug. 9, and the ETNs will begin trading on the NYSE Arca 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 for the short-term ETNs and VXZ for the mid-term ETNs).

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 Aug. 15 based on the closing indicative value of the reverse-split adjusted ETNs on that date and will be paid on Aug. 18.

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