Amex Lists Reset PERQS(SM) Linked to Qualcomm, Inc. PR Newswire ~ April 16, 2001 ~ 1:02 pm EST New $31 Million Issue From Morgan Stanley Dean Witter Offers Investors
Shares of Qualcomm, Inc. Common Stock at Maturity
NEW YORK, April 16 /PRNewswire/ -- The American Stock Exchange today began trading Morgan Stanley Dean Witter & Co. 15% Reset Perfomance Equity-linked Redemption Quarterly-pay Securities (Reset PERQS(SM)), mandatorily exchangeable for shares of the common stock of Qualcomm, Inc. at maturity. Trading under the symbol RQU, the $31 million listing consists of 1.2 million Reset PERQS issued at $26.50, with a maturity date of April 30, 2002.
Reset PERQS are similar to other debt securities and make fixed quarterly interest payments, in this case at an annual rate of 15% on the $26.50 principal amount of each Reset PERQS beginning July 30, 2001 (equivalent to $3.975 per annum). Unlike ordinary debt securities, the Reset PERQS do not guarantee the return of principal at maturity. In addition, Reset PERQS are unique in that:
-- At maturity, holders of the Reset PERQS will exchange each $26.50 principal amount of Reset PERQS for a number of shares of common stock of Qualcomm, Inc. determined by the applicable Exchange Ratio. -- The initial Exchange Ratio is one-half of a share of Qualcomm, Inc. per Reset PERQS and may be subject to adjustment if the price of Qualcomm, Inc. exceeds the First Year or Second Year Cap Prices. -- The maximum principal amount payable at maturity is $40.7464 per Reset PERQS, a 153.76% cap on the issue price of RQU.
Qualcomm, Inc. common stock is traded on the Nasdaq Stock Market under the ticker symbol QCOM. Qualcomm, Inc. is not affiliated with the issuer nor involved with this offering in any way.
For further information on RQU, please contact the Capital Markets Group at the American Stock Exchange at 212-306-1659.
The American Stock Exchange(R), a subsidiary of the National Association of Securities Dealers, Inc. (NASD(R)), is the only primary exchange that offers trading across a full range of equities, Exchange Traded Funds (ETFs), including structured products and HOLDRS(SM), and options. In addition to its role as a national equities market, the Amex is the leader in ETF listings, listing 97 ETFs to date, and is the second-largest options exchange in the U.S., trading options on broad-based and sector indexes as well as domestic and foreign stocks. For more information, visit amex.com.
/CONTACT: Media - Laura J. Orgon of The Torrenzano Group, 212-681-1700, ext. 200, for The American Stock Exchange/
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