Barclays Bank set the redemption date for its iPath Long Enhanced S&P 500 VIX Mid-Term Futures ETN (NYSEArca: VZZ) for Monday, July 11 after the notes fell just below their $10 per share redemption barrier on July 1, according to the New York Stock Exchange.
“We have received information from the issuer that [VZZ] has been called for redemption on July 11, 2011,” Arca, the NYSE’s electronic trading platform, said in a statement. “Accordingly, NYSE Arca will suspend trading in the above security prior to the opening of business on Monday, July 11, 2011. Open orders in the security will be canceled at such time.”
Arca said VZZ’s redemption value will be $10.00 per share. It also suggested that shareholders and other market participants could visit a special Web address Barclays set up in connection with the redemption to get further information.
VZZ, which had $10.5 million in assets as of July 6, was first halted by Arca on July 1, after the ETN fell to $9.98 a share. The ETN’s prospectus stipulated an automatic redemption if the notes happened to be below a prespecified $10 price on that specific date.