Anyone know the fine points of the below NEM equity-linked security idea ??
Sounds similar to preferred, or debentures...
Pays 7%, but I'm fuzzy on how to account for the vulnerabilities and what to watch out for.
NEW YORK, Apr 6, 2004 /PRNewswire via COMTEX/ -- The American Stock Exchange(R) (Amex(R)) today began trading Citigroup Global Markets 7% Equity LinKed Securities (ELKS(R)) linked to Newmont Mining Corp. Trading under the ticker symbol NED.A, the new one-year security was issued at $1,000 per ELKS each with a maturity date of April 11, 2005.
The security will bear an annual coupon of 7% based on the initial offering price of $1,000. The coupon will be payable on October 8, 2004 and April 11, 2005. The ELKS are not subject to redemption by any holder prior to maturity. The value of the ELKS at maturity will be based on the performance of the underlying security. The maturity payment for each ELKS will equal either:
* A fixed number of shares of the stock, or;
* $1,000 in cash.
The securities are issued by Citigroup Global Markets. The Amex specialist unit is AGS/STR/OTA.
If you would like to receive a copy of the prospectus for NED.A, please contact the Capital Markets Group at the American Stock Exchange at (212) 306-1659.
The American Stock Exchange(R) (Amex(R)) is the only primary exchange that offers trading across a full range of equities, options and exchange traded funds (ETFs), including structured products and HOLDRS(SM). In addition to its role as a national equities market, the Amex is the pioneer of the ETF, responsible for bringing the first domestic product to market in 1993. Leading the industry in ETF listings, the Amex lists 138 ETFs. The Amex is also one of the largest options exchanges in the U.S., trading options on broad-based and sector indexes as well as domestic and foreign stocks. For more information, please visit www.amex.com.
SOURCE American Stock Exchange |
