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Barclays Announces a New Redemption Option for Holders of the iPath® S&P GSCI® Crude Oil Total Return Index ETN (CUSIP: 06738C760; Ticker: OILNF)

June 04, 2020 | About:


Barclays Bank PLC (“Barclays”) announced today a new redemption option for holders of the iPath® S&P GSCI® Crude Oil Total Return Index ETN (Ticker: OILNF) (the “OILNF ETNs”). The OILNF ETNs were de-listed from NYSE Arca on April 12, 2018 and currently trade in over-the-counter markets (the “OTC Markets”).





Holders of the OILNF ETNs can now put and simultaneously purchase an equivalent amount of the iPath® Pure Beta Crude Oil Exchange Traded Notes (Ticker: OLEM)(the “OLEM ETNs”) from Barclays in an amount having an equal dollar value, with each transaction having the same valuation date and settlement date (a “Net Settlement”). In this case, upon redemption of the OILNF ETNs, holders would receive a number of OLEM ETNs equal to the aggregate daily redemption value of the redeemed OILNF ETNs, rounded to the nearest full OLEM ETN, with a residual cash payment for any “partial” remaining ETNs.





Holders of the OILNF ETNs that wish to sell their OILNF ETNs and/or purchase the OLEM ETNs may take any of the following actions:







  1. Sell OILNF ETNs and/or purchase OLEM ETNs on the secondary market at the prevailing trading price on the exchange (subject to relevant trading restrictions on the OILNF ETNs);




  2. Put OILNF ETNs to Barclays (with no minimum early redemption size) and simultaneously purchase OLEM ETNs from Barclays in an amount having an equal dollar value, with each transaction having the same valuation date and settlement date (a Net Settlement). In this case, upon redemption of its OILNF ETNs, the holder would receive a number of OLEM ETNs equal to the aggregate daily redemption value of the redeemed OILNF ETNs, rounded to the nearest full OLEM ETN, with a residual cash payment for any “partial” remaining ETNs. Holders who wish to effect a Net Settlement must instruct their broker or other person through whom they hold their OILNF ETNs in accordance with the prospectus for the OILNF ETNs. Holders may also contact Barclays at [email protected] or 1-212-528-7990 to obtain further information regarding the procedures for a Net Settlement.




  3. Put OILNF ETNs to Barclays under the early redemption option (with no minimum early redemption size) without simultaneously purchasing OLEM ETNs or purchase OLEM ETNs from Barclays without simultaneously redeeming OILNF ETNs, in each case for the applicable cash value.






Investors should exercise extreme caution before purchasing or selling OILNF ETNs at a market price that reflects a premium over the intraday indicative value or daily redemption value, as the case may be. The intraday indicative value of the OILNF ETNs is intended to provide investors with an approximation of the effect that changes in the level of the Index during the current trading day would have on the daily redemption value of the OILNF ETNs from the previous day. The intraday indicative value of the OILNF ETNs is calculated and published with a frequency of at least every 15 seconds throughout the trading day. The daily redemption value is the closing value of the OILNF ETNs calculated by us on a daily basis and is used to determine the payment at maturity or upon early redemption. The secondary market for the OILNF ETNs has been volatile and unpredictable, and investors should not assume that the OILNF ETNs will continue to trade at a premium in relation to their intraday indicative value. As a result, if investors purchase the OILNF ETNs at a price which reflects a premium over the intraday indicative value or daily redemption value, as the case may be, they may experience a significant loss if they sell the ETNs at a time when such premium is no longer present, if they redeem the OILNF ETNs at the daily redemption value or if they hold the OILNF ETNs until maturity.





For more information on what a premium in the market prices represents, please refer to the iPath website under “About ETNs.”





The OILNF ETNs and the OLEM ETNs are collectively referred to herein as the “ETNs.” Investors are also encouraged to refer to the prospectus relating to the respective ETNs for risk factors relating to the market value of the ETNs, including the risks associated with a premium in market prices on the OTC Market.





The obligation of Barclays to accept any early redemption of ETNs is subject to the procedures set forth in the section “Specific Terms of the ETNs—Early Redemption Procedures” in the prospectus relating to the ETNs. These procedures include delivering a notice of redemption and signed confirmation to Barclays prior to the relevant valuation date within the time frames set forth in the prospectus and instructing the DTC custodian at which the ETNs are held to book and settle a delivery vs. payment trade with respect to the ETNs.





An investment in iPath ETNs involves significant risks and may not be suitable for all investors. The ETNs are riskier than ordinary unsecured debt securities and have no principal protection. For more information on risks associated with the ETNs, please see "Selected Risk Considerations" below and the risk factors included in the relevant prospectus.





The prospectus for the ETNs to which this communication relates can be found at:





[url="]http%3A%2F%2Fipathetn.com%2Foilnfprospectus+%0A[/url]
[url="]http%3A%2F%2Fipathetn.com%2Folemprospectus[/url]





Barclays is the issuer of iPath® ETNs and Barclays Capital Inc. is the Issuer’s agent in the distribution. Please contact Barclays for further questions:





Financial advisors:







  • Directly contact Barclays at [email protected] or 1-212-528-7990 to obtain further information






Individual investors:







  • Instruct your broker/advisor/custodian to email us at [email protected] or to call us at: 1-212-528-7990






You may call in together with your broker/advisor/custodian or have them speak to us on your behalf.





About Barclays





Barclays is a British universal bank. We are diversified by business, by different types of customer and client, and geography. Our businesses include consumer banking and payments operations around the world, as well as a top-tier, full service, global corporate and investment bank, all of which are supported by our service company which provides technology, operations and functional services across the Group. Barclays offers investment banking products and services in the US through Barclays Capital Inc. For further information about Barclays, please visit our website home.barclays.





Selected Risk Considerations





An investment in the iPath ETNs described herein involves risks. Selected risks are summarized here, but we urge you to read the more detailed explanation of risks described under “Risk Factors” in the applicable prospectus supplement and pricing supplement.





You May Lose Some or All of Your Principal: The ETNs are exposed to any decrease in the level of the underlying index between the applicable inception date and the applicable valuation date. Additionally, if the level of the underlying index is insufficient to offset the negative effect of the investor fee and other applicable costs, you will lose some or all of your investment at maturity or upon redemption, even if the value of such index level has increased or decreased, as the case may be. Because the ETNs are subject to an investor fee and other applicable costs, the return on the ETNs will always be lower than the total return on a direct investment in the index components. The ETNs are riskier than ordinary unsecured debt securities and have no principal protection.





Credit of Barclays Bank PLC: The ETNs are unsecured debt obligations of the issuer, Barclays Bank PLC, and are not, either directly or indirectly, an obligation of or guaranteed by any third party. Any payment to be made on the ETNs, including any payment at maturity or upon redemption, depends on the ability of Barclays Bank PLC to satisfy its obligations as they come due. As a result, the actual and perceived creditworthiness of Barclays Bank PLC will affect the market value, if any, of the ETNs prior to maturity or redemption. In addition, in the event Barclays Bank PLC were to default on its obligations, you may not receive any amounts owed to you under the terms of the ETNs.





Issuer Redemption: Barclays Bank PLC will have the right to redeem or call a series of the OLEM ETNs (in whole but not in part) at its sole discretion and without your consent on any trading day on or after the inception date until and including maturity.





Market and Volatility Risk: The market value of the ETNs may be influenced by many unpredictable factors and may fluctuate between the date you purchase them and the maturity date or redemption date. You may also sustain a significant loss if you sell your ETNs in the secondary market. Factors that may influence the market value of the ETNs include prevailing market prices of the U.S. stock markets or the U.S. Treasury market, the index components included in the underlying index, and prevailing market prices of options on such index or any other financial instruments related to such index; and supply and demand for the ETNs, including economic, financial, political, regulatory, geographical or judicial events that affect the level of such index or other financial instruments related to such index.





Concentration Risk: Because the ETNs are linked to an index composed of futures contracts on a single commodity or in only one commodity sector, the ETNs are less diversified than other funds. The ETNs can therefore experience greater volatility than other funds or investments.





A Trading Market for the ETNs May Not Develop: The liquidity of the ETNs may be limited, as we are not required to maintain any listing of the ETNs.





No Interest Payments from the ETNs: You may not receive any interest payments on the ETNs.





Restrictions on the Minimum Number of ETNs and Date Restrictions for Redemptions: Except with respect to the circumstances described above or as otherwise specified in the applicable product prospectus, you must redeem at least the minimum number of ETNs specified in the applicable product prospectus at one time in order to exercise your right to redeem your ETNs on any redemption date. You may only redeem your ETNs on a redemption date if we receive a notice of redemption from you by certain dates and times as set forth in the product prospectus.





Uncertain Tax Treatment: Significant aspects of the tax treatment of the ETNs are uncertain. You should consult your own tax advisor about your own tax situation.





The ETNs may be sold throughout the day on the exchange through any brokerage account. There are restrictions on the minimum number of ETNs you may redeem directly with the issuer as specified in the applicable prospectus. Commissions may apply and there are tax consequences in the event of sale, redemption or maturity of ETNs. Sales in the secondary market may result in significant losses.





Pure Beta Series 2 Methodology. The Barclays Pure Beta Series 2 Methodology with respect to the OLEM ETNs seeks to mitigate distortions in the commodities markets associated with investment flows and supply and demand distortions. However, there is no guarantee that the Pure Beta Series 2 Methodology will succeed in these objectives and an investment in the OLEM ETNs linked to indices using this methodology may underperform compared to an investment in a traditional commodity index linked to the same commodities.





The S&P GSCI Total Return Index and the S&P GSCI Crude Oil Total Return Index (the “S&P GSCI Indices”) are products of S&P Dow Jones Indices LLC (“SPDJI”), and have been licensed for use by Barclays Bank PLC. S&P® and GSCI® are registered trademarks of Standard & Poor’s Financial Services LLC (“SPFS”). These trademarks have been licensed to SPDJI and its affiliates and sublicensed to Barclays Bank PLC for certain purposes. The S&P GSCI Indices are not owned, endorsed, or approved by or associated with Goldman, Sachs & Co. or its affiliated companies. The ETNs are not sponsored, endorsed, sold or promoted by SPDJI, SPFS, or any of their respective affiliates (collectively, “S&P Dow Jones Indices”). S&P Dow Jones Indices does not make any representation or warranty, express or implied, to the owners of the ETNs or any member of the public regarding the advisability of investing in securities generally or in the ETNs particularly or the ability of the S&P GSCI Indices to track general market performance.





© 2020 Barclays Bank PLC. All rights reserved. iPath, iPath ETNs and the iPath logo are registered trademarks of Barclays Bank PLC. All other trademarks, servicemarks or registered trademarks are the property, and used with the permission, of their respective owners.





NOT FDIC INSURED · NO BANK GUARANTEE · MAY LOSE VALUE

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