Barclays extends tender for iPath MSCI India index ETNs, lifts price

By Sarah Lizee

Olympia, Wash., Aug. 5 – Barclays Bank plc extended the cash tender offer to purchase any and all of its iPath MSCI India index ETNs due Dec. 18, 2036 (Cusip: 06739F291) and solicitation of consents from holders to amend some provisions of the notes, according to a press release.

The offer and consent solicitation will now expire at 11:59 p.m. ET on Sept. 1. They were previously set to expire at 11:59 p.m. ET on Aug. 4.

In addition, the purchase price will not reflect a 4% premium to the closing indicative note value of the notes on Sept. 1. Previously, the purchase price was to reflect a 2% premium to the closing indicative note value of the notes on Aug. 4.

Noteholders who have already tendered their notes under the original offer are not required to take any further action to receive the new premium.

Noteholders who tender and do not withdraw their notes will be deemed to have consented to the proposed amendment under the consent solicitation.

The notes have been determined to be subject to some regulations issued by the Securities and Exchange Board of India (SEBI) relating to offshore derivative instruments linked to Indian equity securities, and SEBI has advised the issuer that the positions being held in the notes may continue only until Dec. 31.

The offer is conditioned on the minimum tender of 50% in aggregate principal amount of outstanding notes at or prior to the expiration deadline.

The issuer may choose to decrease or waive the minimum tender condition without extending the expiration deadline or reinstating revocation rights, if revocation rights have been suspended. As a result, noteholders may not be able to withdraw any of their previous tenders following a lowering or waiver of the minimum tender condition.

A majority in aggregate principal amount of outstanding notes is required to approve the proposed amendment. If holders of a majority of the notes have validly tendered their notes as of the expiration deadline, the consent threshold will be deemed to be satisfied, and the indenture and the global certificate of the notes will be amended to provide the issuer with the right to redeem all but not part of the outstanding notes on the redemption date for a cash payment per note equal to the closing indicative note value on the valuation date. The redemption date will be the fifth business day after the valuation date.

Notes purchased by the issuer under the offer will be immediately canceled.

The issuer currently intends to redeem all outstanding notes shortly after the proposed amendment becomes effective but no later than Dec. 31.

The payment upon redemption to noteholders may be greater than or less than the purchase price under the offer but will not include the premium payment or any amount in excess of the closing indicative note value on the valuation date.

The dealer manager is Barclays (212 528-7990 or etndesk@barclays.com), and the tender and information agent is D.F. King & Co., Inc. (barclays@dfking.com).

Barclays Bank is a banking and financial services company based in London.

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