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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Katherine Derbyshire who wrote (19462)	5/14/1998 1:48:00 PM
From: Artslaw	Read Replies (2) \| Respond to of 70976

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. -- 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.