Thread -- Do these new AMAT PERQS sound good? I don't like the sound of "may be adjusted upward," but other than that, I like it.
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Amex Lists Reset PERQS(SM) Linked to Applied Materials Common
Stock - New $138.25 Million Issue From Morgan Stanley Dean Witter
Due May 15, 2000 -
Thursday, May 14, 1998 10:29 AM
NEW YORK, May 14 /PRNewswire/ -- The American Stock Exchange today
began trading Morgan Stanley Dean Witter & Co. Reset Performance
Equity-linked Redemption Quarterly-pay Securities, or Reset
PERQS(SM), exchangeable for shares of the common stock of Applied
Materials, Inc. or the cash equivalent. Trading under the ticker
symbol APP, the $138.25 million listing consists of 3.5 million
Reset PERQS issued at $39.50, with a maturity date of May 15, 2000.
Reset PERQS are similar to other debt instruments in that they make
fixed quarterly interest payments, in this case at an annual rate of
6% of the $39.50 offering price, or $2.37 per year. However, Reset
PERQS are unique.
-- Unlike many debt securities, the amount to be paid at maturity
is not fixed; rather it is based upon the price of Applied
Materials, Inc. common stock.
-- The Exchange Ratio of 1.0 (One Reset PERQS redeemable for
one share of AMAT common stock) is subject to an adjustment on
May 17, 1999, one year prior to maturity.
-- The Cap Price may be adjusted upward to the greater of $52.7325
or 133.5% of the First Year Closing Price on May 17, 1999.
If the market price per share of Applied Materials, Inc. on May 17,
1999, is less than or equal to the First Year Cap Price of $52.7325,
no adjustments will be made to the Exchange Ratio of 1.0. If the
market price of Applied Materials, Inc. on that date exceeds the
First Year Cap Price of $52.7325, the Exchange Ratio will be
adjusted accordingly. The value of the stock or cash equivalent to be
delivered upon maturity will not exceed $70.40 per principal amount
of each Reset PERQS.
APP was issued at $39.50 per Reset PERQS by Morgan Stanley Dean Witter. The specialist unit is AIM/Aegis Specialist. Applied
Materials (Nasdaq: AMAT) is not affiliated with the issuer nor
involved with this offering in any way.
The Amex also trades PERQS tied to the American Depositary Receipts
of Telebras, as well as Reset PERQS tied to the domestic shares
of Advanced Micro Devices.
The Amex is a leader in listing warrants on foreign currencies and
indexes, as well as hybrid debtinstruments and other structured
products.
Visit Amex. web site located at amex.com. |
