Would someone explain this to me in plain english????
AMEX lists 5 pct Cisco Systems YEELDS
Reuters Story - February 27, 1998 14:36
%DRV %STX %US %DBT %DPR %APL %BUS CSCO V%REUTER P%RTR
CHICAGO, Feb 27 (Reuters) - The American Stock Exchange
(AMEX) on Friday said its began trading five percent Cisco
Systems Yield Enhanced Equity Linked Debt Securities, or
YEELDS, offered by Lehman Brothers Holdings Inc.
One million YEELDS were issued at $66.50, the AMEX said.
They trade under the ticker symbol "YCS".
Cisco Systems YEELDS make quarterly interest payments based
on an annual rate of 5 percent of the issue price or $3.33, and
are scheduled to mature February 26, 2001.
Cisco Systems YEELDS differ from conventional notes in that
the amount to be paid at maturity is not fixed, but based upon
the price movement of the company's common stock.
At maturity, holders of YEELDS will receive the lesser of
either 151.5 percent of the issue price, or the average closing
price of Cisco Systems' common stock for the 10 trading days
before maturity.
The listing was managed by Lehman Brothers; the specialist
unit is Susquehanna Investment Group.
Cisco Systems is not affiliated with the issuer
nor involved with this offering in any way, the exchange said.
The San Jose, Calif.-based Cisco Systems designs access
servers and software for Internet access. The company's stock
on Thursday was among the most actively traded on Nasdaq,
closing off 1/4 at 66-1/2 with 7,793,500 shares changing hands.
On Friday near midday, Cisco Systems' stock was up 7/8 at
67-3/8 on Nasdaq. |
