Barclays OFI SteelPath Midstream MLP Index used as underlying
index in the Barclays OFI SteelPath MLP ETNs (ticker: OSMS)
Barclays Bank PLC (“Barclays”) and OFI Global Asset Management,
which consists of OppenheimerFunds, Inc. and certain of its
advisory subsidiaries, announced today that following the close of
business on Friday, October 9, 2015, the following Index
Constituents will be removed from the Barclays OFI SteelPath
Midstream MLP Index (the “Index”):
- Targa Resources Partners LP
- Crestwood Equity Partners LP
- DCP Midstream Partners LP
In addition to the above removals and also occurring following
the close of business on Friday, October 9, 2015, the following
three constituents will be added to the Index:
- Antero Midstream Partners LP
- Shell Midstream Partners LP
- Dominion Midstream Partners LP
The Barclays OFI SteelPath MLP ETNs (the “ETNs”) are linked to
the Volume-Weighted Average Price (“VWAP”) of the Index. The ETNs
were listed on the NYSE Arca stock exchange on April 24, 2014.
An investment in the ETNs involves significant risks, including
possible loss of principal and may not be suitable for all
investors. The ETNs are riskier than ordinary unsecured debt
securities and have no principal protection. The ETNs are also
subject to certain investor fees, which will have a negative effect
on the value of the ETNs. The ETNs are speculative and may exhibit
high volatility. 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.
In accordance with the Index methodology as described in the
prospectus relating to the ETNs, the Index is rebalanced quarterly.
The 35 Index Constituents will be rebalanced on a capped,
float-adjusted, capitalization-weighted basis across four index
business days starting on Friday, October 9, 2015. Constituent
additions to and deletions from the Index do not reflect an opinion
by Barclays Bank PLC on the investment merits of the respective
securities.
The Index is designed to track the performance of a basket of
direct interests in master limited partnerships and limited
liability companies (collectively, the “Index Constituents”)
organized in the United States that trade on certain U.S.
exchanges, are classified in the Midstream Oil & Gas category
or Liquid Petroleum & Natural Gas Shippers category according
to the Bloomberg Industry Classification System® and meet certain
eligibility criteria.
The Index Constituents are selected for inclusion in the Index
using the OFI SteelPath Midstream MLP Strategy (the “Strategy”)
developed by OFI SteelPath, Inc. The Strategy selects a basket of
up to 35 Index Constituents and allocates a notional weight in the
Index for each Index Constituent based on certain eligibility
criteria, including their distribution payment history and their
size as measured by free-float market capitalization and average
daily trading value. Owning the ETNs is not the same as owning
interests in the Index Constituents or a security directly linked
to the performance of the Index.
About OFI Global Asset Management
OFI Global Asset Management consists of OppenheimerFunds, Inc.
and certain of its advisory subsidiaries, including OFI Global
Asset Management, Inc., OFI Global Institutional, Inc., OFI
SteelPath, Inc. and OFI Global Trust Company. The firm offers a
full range of investment solutions across equity, fixed income and
alternative asset classes. As of September 30, 2015, the firm
managed $213 billion in assets. Clients include institutional
investors globally such as corporations, public funds, foundations
and endowments, as well as retail mutual fund investors.
Selected Risk Considerations
An investment in any ETNs linked to the Barclays OFI SteelPath
Midstream MLP Index (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 Volume Weighted Average Price
(“VWAP”) level between the inception date and the applicable
valuation date. Additionally, if the VWAP level 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 VWAP value 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 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, as
compared to the initial VWAP level. Although the VWAP level is
intended to track the performance of the Index, the calculation of
the VWAP level is different from the calculation of the official
closing level of the 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 Index.
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 the ETNs is
linked to the performance of the VWAP level of the 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
Index and the value of your ETNs in unforeseeable ways.
Concentration Risk: The index constituents are companies
in the Midstream – Oil & Gas and Liquid Petroleum and Natural
Gas Shippers categories, as determined by the Bloomberg Industry
Classification System® (“BCIS”). 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 infrastructure and midstream energy business 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.
Restrictions on the Minimum Number of ETNs and Date
Restrictions for Redemptions: You must redeem at least 50,000
ETNs 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.
Barclays Bank PLC has filed a registration statement
(including a prospectus) with the SEC for the offering to which
this communication relates. Before you invest, you should read the
prospectus and other documents Barclays Bank PLC has filed with the
SEC for more complete information about the issuer and this
offering. You may get these documents for free by visiting EDGAR on
the SEC website at www.sec.gov. Alternatively,
Barclays Bank PLC will arrange for Barclays Capital Inc. to send
you the prospectus if you request it by calling toll-free
1-877-764-7284, or you may request a copy from any other dealer
participating in the offering.
OppenheimerFunds Distributor, Inc. (“OFDI”), doing business as
OFI Global Asset Management, assists in the promotion of the
Barclays OFI SteelPath MLP ETNs. OFDI is not affiliated with
Barclays Capital Inc. or Barclays Bank PLC.
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.
“OFI SteelPath”, “OFI Global Asset Management”, the Four Hands
Design Mark (#86085815), and the OFI Global Asset Management Design
Mark (#86049459) are trademarks of OFI SteelPath, Inc. (the “Index
Selection Agent”) or its licensors, and have been licensed for use
by Barclays Bank PLC in connection with the Barclays OFI SteelPath
Midstream MLP Index. “Barclays” is a trademark of Barclays Bank
PLC. Barclays Capital Inc. (the “Index Sponsor”) and the Index
Selection Agent do not guarantee the accuracy and/or completeness
of the Index, any data included therein, or any data from which it
is based, and neither the Index Sponsor nor the Index Selection
Agent shall have any liability for any errors, omissions, or
interruptions therein. The Index Sponsor and the Index Selection
Agent do 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 Index to track
general market performance.
©2015 Barclays Bank PLC. All rights reserved. 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 an international financial services provider engaged
in personal, corporate and investment banking, credit cards and
wealth management with an extensive presence in Europe, the
Americas, Africa and Asia. Barclays’ purpose is to help people
achieve their ambitions – in the right way. With 325 years of
history and expertise in banking, Barclays operates in over 50
countries and employs over 130,000 people. Barclays moves, lends,
invests and protects money for customers and clients worldwide. For
further information about Barclays, please visit our website
www.barclays.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20151006006722/en/
OppenheimerFundsMeredith Richard, +1 212 323
4275mrichard@ofiglobal.comorBarclaysMark Lane, +1 212 412
1413mark.lane@barclays.com
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