Barclays Bank PLC announced that it will implement a 1 for 4 reverse split of its iPath S&P 500 VIX Short-Term Futures Exchange Traded Notes or "ETNs" effective Thursday, October 5, 2012. The ETNs 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 PLC said it has the right (but not the obligation) to initiate such a reverse split if the closing indicative value of the ETNs falls below $25.00 on any business day, as described in the pricing supplement relating to the ETNs. On September 21, 2012, the closing indicative value of the ETNs was $8.71.
The record date for the reverse split will be the close of business, New York time, on October 4, 2012. 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 October 5, 2012 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, the company said.
The company noted that 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 cash amount due on any partials will be determined on October 12, 2012, based on the closing indicative value of the reverse-split adjusted ETNs on such date and will be paid by Barclays Bank PLC on October 17, 2012.
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by RTT Staff Writer
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