Barclays suspends further issuances of iPath S&P GSCI Crude Oil ETNs

By Marisa Wong

Morgantown, W.Va., Nov. 17 – Barclays Bank plc announced on Thursday that effective after the close of trading Nov. 18 it will suspend any further sales and issuances of its iPath S&P GSCI Crude Oil Total Return Index ETNs.

The notes trade on the NYSE Arca under the ticker symbol “OIL,” and the index underlying the ETNs is the S&P GSCI Crude Oil Total Return index.

In addition, Barclays will waive the minimum early redemption size of 50,000 ETNs for each valuation date occurring on a Wednesday (or, if that calendar day is not a trading day, the immediately following trading day). The minimum early redemption size for any other day of the month will remain at 50,000 ETNs. This change will be effective after the close of trading on Friday and will be effective for the next three years ending on and including Nov. 20, 2019.

Barclays also announced on Thursday the listing of a new ETN linked to the S&P GSCI Crude Oil Total Return index. The new iPath series B S&P GSCI Crude Oil ETNs (NYSE Arca: OILB) will offer a similar exposure as the existing ETNs but will include a reduced investor fee and an issuer call feature.

Barclays said that holders of the old ETNs who wish to sell their notes or purchase the new series B ETNs may take any of the following actions:

• Sell old ETNs or purchase new ETNs on the secondary market at the prevailing trading price on the exchange;

• Put old ETNs to Barclays (at the reduced minimum early redemption sizes, if applicable) and simultaneously purchase new ETNs from Barclays in an amount having an equal dollar value, with each transaction having the same valuation date and settlement date.

In this case, upon redemption of its old ETNs, the holder would receive a number of new ETNs equal to the aggregate daily redemption value of the redeemed old ETNs, rounded to the nearest full new ETN, with a residual cash payment for any “partial” remaining ETNs.

Holders who want a net settlement must instruct their broker and may also contact Barclays at etndesk@barclays.com or 212 528-7990 to obtain further information regarding the procedures for net settlement; or

• Put old ETNs to Barclays under the early redemption option without simultaneously purchasing new ETNs or purchase new ETNs from Barclays without simultaneously redeeming old ETNs, in each case for the applicable cash value.

However, holders are not required to take any of these actions and may choose to continue to hold their ETNs at any time, the company noted.

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