Skip to main content

Barclays Bank PLC Announces Amendments to the Coupon Ex-Date Definition for Two MLP ETNs

Barclays announced today that effective Thursday, August 31, 2017 (the “Effective Date”), the definition of Coupon Ex-Date for two Barclays MLP ETNs described below will be amended. The ETNs trade on the NYSE Arca stock exchange under the ticker symbols noted below.

ETN Name Ticker Exchange
iPath® S&P MLP ETN (“IMLP ETNs”) IMLP NYSE Arca
Barclays ETN+ Select MLP ETN (“ATMP ETNs”) ATMP NYSE Arca

Prior to the change described above being made, the Coupon Ex-Date (as defined in the prospectus for each ETN) for the ATMP ETNs and the IMLP ETNs meant the seventh index business day following each coupon valuation date. Beginning on the Effective Date, the Coupon Ex-Date for each of the ATMP ETNs and the IMLP ETNs means the eighth index business day following each coupon valuation date. This change will shorten the time period between the Coupon Ex-Date and the Coupon Record Date to one index business day from the current time period of two index business days.

The next coupon valuation date for each of the ATMP ETNs and the IMLP ETNs is November 15, 2017.

The change is being made in light of the SEC amendments to Rule 15c6-1(a) under the Securities Exchange Act of 1934 to shorten the standard settlement cycle for securities trades from T+3 to T+2. The amended rules will also shorten the time period for which transactions in stocks shall be ex-dividend or ex-rights.

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 ATMP ETNs are linked to the performance of the Volume-Weighted Average Price (“VWAP”) of the Atlantic Trust Select MLP Index (the “AT Index”). The AT Index is designed to provide exposure to a basket of midstream US and Canadian master limited partnerships, limited liability companies and corporations (collectively, the “Index Constituents”) that trade on major US exchanges, are classified in the GICS® Energy Sector or GICS® Gas Utilities Industry according to the Global Industry Classification Standard® (“GICS”) and meet certain eligibility criteria.

The AT Index Constituents are selected for inclusion in the Index using the Atlantic Trust Select Master Limited Partnership Strategy (the Strategy”) developed by AT Investment Advisers, Inc. (the “Index Selection Agent”). The Strategy dynamically selects a basket of up to 100 Index Constituents based on their long-term credit rating, the portion of their cash flow driven by mid-stream operations and their size as measured by free-float market capitalization and average daily trading value. The Index Selection Agent provides the Index Constituents selected by the Strategy to Barclays Bank PLC. The AT Index is administered, calculated and published by Barclays Index Administration, a distinct function within the Investment Bank of Barclays Bank PLC (the “Index Sponsor”). The Index Sponsor has appointed a third-party index calculation agent (currently Bloomberg Index Services Limited) to calculate and maintain the AT Index.

About CIBC Atlantic Trust Private Wealth Management

CIBC Atlantic Trust Private Wealth Management is one of the nation’s leading private wealth management firms, offering integrated investment management and wealth strategies for high net worth individuals, families, foundations and endowments. The firm considers clients’ financial, trust, estate planning and philanthropic needs in developing customized asset allocation and investment management strategies. Experienced professionals deliver proprietary investment offerings and a robust open architecture platform of traditional and alternative managers. The firm has achieved 41 straight quarters of growth coming from clients adding assets to their existing accounts and from new business. CIBC Atlantic Trust operates in 14 full-service locations throughout the U.S., with $35.9 billion in assets under management as of June 30, 2017. For more information, visit www.cibcatlantictrust.com.

About CIBC

CIBC is a leading Canadian-based global financial institution with 11 million personal banking, business, public sector and institutional clients. Across Personal and Small Business Banking, Commercial Banking and Wealth Management, and Capital Markets businesses, CIBC offers a full range of advice, solutions and services through its leading digital banking network, and locations across Canada, in the United States and around the world. Ongoing news releases and more information about CIBC can be found at www.cibc.com/ca/media-centre or by following on LinkedIn (www.linkedin.com/company/cibc), Twitter @CIBC, Facebook (www.facebook.com/CIBC) and Instagram @CIBCNow.

The IMLP ETNs are linked to the performance of the consolidated Volume-Weighted Average Price level of the S&P MLP Index (the "SPMLP Index"), and are designed to pay a quarterly coupon. The SPMLP Index is designed to provide exposure to leading partnerships that trade on major US exchanges and are classified in the GICS® Energy Sector and GICS® Gas Utilities Industry. The SPMLP Index includes both master limited partnerships and publicly traded limited liability companies which have a similar legal structure to MLPs and share the same tax benefits as MLPs.

For further information, please instruct your broker/advisor/custodian to email us at etndesk@barclays.com or alternatively, your broker/custodian can call us at: 1-212-528-7990.

The prospectus for each ETN to which this communication relates can be found at:

http://www.etnplus.com/atmpprospectus
http://www.ipathetn.com/imlpprospectus

Selected Risk Considerations

An investment in the iPath ETNs described herein (the “ETNs”) 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 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 has increased. Because the ETNs are subject to an investor fee and any 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” the 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.

The Payment on the ETNs is Linked to the VWAP Level, Not to the Closing Level of the Underlying Index and Not to the Published Intraday Indicative Value of the ETNs: Your payment at maturity or upon early redemption is linked to the performance of the VWAP level of the relevant underlying index, as compared to the initial VWAP level. Although the VWAP level is intended to track the performance of the relevant underlying index, the calculation of the VWAP level is different from the calculation of the official closing level of the relevant underlying index. Therefore, the payment at maturity or early redemption of your ETNs, may be different from the payment you would receive if such payment were determined by reference to the official closing level of the underlying index for the relevant ETN.

No Guaranteed Coupon Payments: You are not guaranteed to receive coupon payments on the ETNs. You will receive a coupon payment on a coupon payment date only to the extent that the accrued dividend exceeds the accrued investor fee on the relevant coupon valuation date. The amount of the accrued dividend on any coupon valuation date depends in part on the aggregate cash value of distributions that a reference holder would have been entitled to receive in respect of the index constituents prior to the relevant coupon valuation date.

Market and Volatility Risk: The return on each ETN is linked to the performance of the VWAP level of its underlying index which, in turn, is linked to the performance of the master limited partnerships and other securities that are included as index constituents at any time. The prices of the index constituents may change unpredictably and, as a result, affect the level of the relevant underlying index and the value of the ETNs in unforeseeable ways.

Concentration Risk: The index constituents are companies in the Energy Sector or Gas Utilities Sector, as determined by the GICS® classification system. In addition, many of the index constituents are smaller, non-diversified businesses that are exposed to the risks associated with such businesses, including the lack of capital funding to sustain or grow businesses and potential competition from larger, better financed and more diversified businesses. The ETNs are susceptible to general market fluctuations in the energy and gas MLP market and to volatile increases and decreases in value, as market confidence in, and perceptions regarding the index constituents change. Your investment may therefore carry risks similar to a concentrated securities investment in one industry or sector.

A Trading Market for the ETNs May Not Develop: Although the ETNs are listed on NYSE Arca, a trading market for the ETNs may not develop and 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: You must redeem at least 50,000 ETNs of the same series 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 pricing supplement.

Tax Treatment: Significant aspects of the tax treatment of the ETNs may be less favorable than a direct investment in MLPs and 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. Commissions may apply and there are tax consequences in the event of sale, redemption or maturity of ETNs.

Atlantic Trust Select MLP Index is a trademark of Barclays Bank PLC.

The S&P MLP Index (the “Index”) is a product of S&P Dow Jones Indices LLC and has been licensed for use by Barclays Bank PLC. The IMLP ETNs are not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC or any of its 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 IMLP ETNs particularly or the ability of the SPMLP Index to track general market performance.

Bloomberg Index Services Limited is the official index calculation and maintenance agent of the AT Index, an index owned and administered by Barclays Bank PLC. Bloomberg Index Services Limited does not guarantee the timeliness, accurateness, or completeness of the AT Index calculations or any data or information relating to the AT Index. Bloomberg Index Services Limited makes no warranty, express or implied, as to the AT Index or any data or values relating thereto or results to be obtained therefrom, and expressly disclaims all warranties of merchantability and fitness for a particular purpose with respect thereto. To the maximum extent allowed by law, Bloomberg Index Services Limited, its affiliates, and all of their respective partners, employees, subcontractors, agents, suppliers and vendors (collectively, the “protected parties”) shall have no liability or responsibility, contingent or otherwise, for any injury or damages, whether caused by the negligence of a protected party or otherwise, arising in connection with the calculation of the AT Index or any data or values included therein or in connection therewith and shall not be liable for any lost profits, losses, punitive, incidental or consequential damages.

© 2017 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

Barclays is a transatlantic consumer, corporate and investment bank offering products and services across personal, corporate and investment banking, credit cards and wealth management, with a strong presence in our two home markets of the UK and the US. With over 325 years of history and expertise in banking, Barclays operates in over 40 countries and employs approximately 85,000 people. Barclays moves, lends, invests and protects money for customers and clients worldwide.

Contacts:

Barclays Bank PLC
Andrew Smith, +1 212-412-7521
andrew.x.smith@barclays.com

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.