Barclays Bank will implement a one for four reverse split of its iPath S&P 500 VIX Short-Term Futures exchange traded notes on 9 November.
The notes trade on the NYSE Arca under the ticker symbol VXX and on the Toronto Stock Exchange under ticker symbols VXX and VXX.U.
Barclays Bank has the right to initiate such a reverse split if the closing indicative value of the notes falls below USD25.00 on any business day. On 25 October, the closing indicative value of the notes was USD12.68.
The closing indicative value of the notes on the record date will be multiplied by four to determine the reverse-split adjusted value of the notes. The reverse split will be effective at the open of trading on 9 November and the notes will begin trading on the NYSE Arca and the TSX on a reverse-split adjusted basis on such date. The reverse-split adjusted notes will have a new Cusip, but will retain the same ticker symbols.
Investors who, as of the record date, hold a number of notes that is not divisible by four will receive one reverse-split adjusted note for every four notes held on the record date and a cash payment for any odd number of notes remaining. The cash amount due on any partials will be determined on 16 November, based on the closing indicative value of the reverse-split adjusted notes on such date and will be paid by Barclays Bank on 19 November.
