Barclays is to implement a one-for-four reverse split of its iPath S&P 500 VIX Short-Term Futures Exchange Traded Notes (ETNs) effective 8 November 2013.
The ETNs trade on the NYSE Arca stock exchange under the ticker symbol VXX and on the Toronto Stock Exchange (TSX) under ticker symbols VXX and VXX.U.
Barclays Bank has the right (but no obligation) to initiate such a reverse split if the closing indicative value of the ETNs falls below CAD25.00 on any business day, as described in the pricing supplement relating to the ETNs. On 25 October, the closing indicative value of the ETNs was CAD12.85.
The record date for the reverse split will be the close of business, New York time, on 7 November 2013. The closing indicative value of the ETNs on the record date will be multiplied by four to determine the reverse-split adjusted value of the ETNs. The reverse split will be effective at the open of trading on 8 November and the ETNs will begin trading on the NYSE Arca and the TSX on a reverse-split adjusted basis on such date. The reverse-split adjusted ETNs will have a new CUSIP, but will retain the same ticker symbols.
Investors who, as of the record date, hold a number of ETNs that is not divisible by four will receive one reverse-split adjusted ETN for every four ETNs held on the record date and a cash payment for any odd number of ETNs remaining (the partials). The cash amount due on any partials will be determined on 15 November 2013, based on the closing indicative value of the reverse-split adjusted ETNs on such date and will be paid by Barclays Bank on 20 November 2013.