Pricing Supplement No. 716 Dated 2/16/94 Rule 424(b)(3)
(To Prospectus dated December 14, 1993 and File No. 33-51269,
Prospectus Supplement dated December 14, 1993) 33-57922 and 33-49136
SALOMON INC
Medium-Term Notes, Series D
(Registered Notes -- Floating Rate or Indexed Rate)
Due More Than Nine Months from Date of Issue
Principal Amount or Face Amount: $50,000,000.00
Issue Price: 100.0000000000%
Proceeds to Company on original issuance: $50,000,000.00
Commission or Discount on original issuance: $.00
Salomon Brothers Inc's capacity on original issuance: | | As agent
|X| As principal
If as principal:
|X| The Registered Notes are being offered at varying prices related
to prevailing market prices at the time of resale.
| | The Registered Notes are being offered at a fixed initial public
offering price of % of Principal Amount or Face Amount.
Original Issue Date: 2/24/94
Stated Maturity: 2/24/95
Specified Currency:
(If other than U.S. Dollars)
Authorized Denominations: $100,000. and integral multiples of $1,000.
(If other than as set forth in the Prospectus Supplement)
Interest Payment Dates: August 24, 1994 and February 24, 1995.
(If other than as set forth in the Prospectus Supplement)
Indexed Principal Note: | | Yes (see attached) |X| No
Floating Rate: | | Indexed Rate: |X| (see attached)
Initial Interest Rate:
Base Rate: | | CD Rate | | Commercial Paper Rate | | Federal Funds Rate
| | LIBOR Telerate | | LIBOR Reuters | | Treasury Rate
| | Treasury Rate Constant Maturity |X| Other (see attached)
Interest Reset Period or Interest Reset Dates: Daily
Index Maturity: 10 year
Spread (+/-):
Spread Multiplier:
Spread Reset: | | The Spread or Spread Multiplier may not be changed prior to
Stated Maturity.
| | The Spread or Spread Multiplier may be changed prior to
Stated Maturity (see attached).
Optional Reset Dates (if applicable):
Maximum Interest Rate:
Minimum Interest Rate:
Amortizing Note: | | Yes |X| No
Amortization Schedule:
Optional Redemption: | | Yes |X| No
Optional Redemption Dates:
Redemption Prices:
Optional Repayment: | | Yes |X| No
Optional Repayment Dates:
Optional Repayment Prices:
Optional Extension of Stated Maturity: | | Yes |X| No
Final Maturity:
Discount Note: | | Yes |X| No
Total Amount of OID:
Yield to Maturity:
Pricing Supplement dated February 23, 1994
(to Prospectus Supplement dated December 14, 1993,
to Prospectus dated December 14, 1993)
DESCRIPTION OF THE NOTES
General
The description in this Pricing Supplement of the
particular terms of the Registered Notes offered hereby (the
"Notes") supplements, and to the extent inconsistent therewith
replaces, the descriptions of the general terms and provisions of
the Registered Notes set forth in the accompanying Prospectus and
Prospectus Supplement, to which description reference is hereby
made. Capitalized terms used but not otherwise defined herein
shall have the meanings specified in the Prospectus and
Prospectus Supplement.
"New York Banking Day" means any day, other than a
Saturday or Sunday, that is not a day on which banking
institutions are authorized or required by law or regulation to
be closed in the City of New York.
"Interest Period" means the Initial Interest Period and
each subsequent Interest Reset Period.
Interest
The Notes will bear interest during each Interest
Period at a rate of 5.10% per annum; provided, however; that if
with respect to any Interest Period (including the Initial Issue
Period), CMT10 for such Interest Period exceeds 6.40% per annum,
the Note will not bear interest for such Interest Period.
"CMT 10" means, for each Interest Period, the rate set
forth in the statistical release designated H.15(519) published
by the Board of Governors of the Federal Reserve System opposite
the caption "10-Year" under the heading "U.S.
Government/Securities/Treasury Constant Maturities", ten New York
Banking Days prior to the related Interest Reset Date such
Interest Reset Period (the "Determination Date") which shall be
the Original Issue Date in the case of the Initial Interest
Period. In the event that H.15(519) is not published on the
Determination Date, CMT10 shall mean that rate set forth on
Telerate Page 7059, or its successor page as determined by the
Calculation Agent, opposite the caption "10-Year" on the
Determination Date. In the event that no such rates are
published on the Determination Date, the Calculation Agent will
contact the Federal Reserve Board and CMT10 shall mean the rate
for the 10-Year Treasury Note for the Determination Date as
provided by the Federal Reserve Board. In the event that no such
rates are published and the Federal Reserve Board does not
provide a rate for the 10-Year Treasury Note for the
Determination Date, then CMT10 shall mean the arithmetic mean of
the Interpolated Rates for three leading dealers of United States
government securities, chosen by the Calculation Agent, as of the
Determination Date. If the Calculation Agent cannot obtain an
Interpolated Rate for three leading dealers, CMT10 shall mean the
arithmetic mean of all Interpolated Rates obtained by the
Calculation Agent. In the event that only one Interpolated Rate
is obtained CMT10 shall equal such Interpolated Rate. The
Calculation Agent shall continue to poll dealers until at least
one Interpolated Rate can be determined.
"Interpolated Rate" means, for any leading dealer of
United States government securities on any Determination Date,
the rate derived by the Calculation Agent by interpolating to the
Index Maturity on an actual day count basis the bid yield
quotations according to the written records of such dealer with
respect to 3:00 p.m. (eastern standard time) on the Determination
Date, for the non-callable U.S. Treasury Note that is nearest in
maturity to the Index Maturity but not less than the Index
Maturity and for the non-callable U.S. Treasury Note that is
nearest in maturity to the Index Maturity but not more than the
Index Maturity.
The amount of interest payable on the Notes will be
computed by dividing the interest rate in effect on each day by
365.
If any Interest Payment Date is not a New York Banking
Day, such Interest Payment Date shall not be postponed; however,
any payment required to be made in respect of the Notes on a date
(including the day of Stated Maturity) that is not a New York
Banking Day need not be made on such date, but may be made on the
next succeeding New York Banking Day with the same force and
effect as if made on such date, and no additional interest shall
accrue as a result of such delayed payment.
The Calculation Agent for the Notes will be Salomon
Brothers Inc, a wholly-owned subsidiary of the Company. The
determination of CMT10 by the Calculation Agent shall, in the
absence of manifest error, be conclusive for all purposes.
TAXATION
The following summary supplements, and to the extent inconsistent
therewith replaces, the discussion of United States taxation set
forth in the accompanying Prospectus Supplement under the heading
"United States Tax Considerations," to which discussion reference
is hereby made.
The following is a summary of certain anticipated U.S.
Federal income tax consequences to a holder of an investment in
the Note. It does not purport to address every U.S. Federal
income tax issue raised by ownership of the Note. In particular,
this summary applies only to a person that holds the Note as a
capital asset and does not deal with a person in a special tax
situation or a person that holds the Note as part of an
integrated investment (including a "straddle") comprising the
Note and one or more other positions. Prospective purchasers of
the Note are urged to consult their own tax advisors regarding
the U.S. Federal (as well as state and local) tax consequences to
them of owning the Note in light of their particular
circumstances.
Final regulations dealing with original issue discount
were published on February 2, 1994, and as so published are
referred to herein as the Final Regulations. While the Final
Regulations are not yet effective, the Company will rely upon the
Final Regulations rather than the Proposed Regulations to
determine the treatment of the Note. Under the Final
Regulations, the Note is a variable rate debt instrument that
provides for interest at an objective rate. Because the Note is
a short-term debt instrument, the Note will be treated as issued
with original issue discount. While the application of the Final
Regulations to a short-term variable rate debt instrument is
unclear, the Company intends to treat original issue discount on
the Note as accruing based on the level of CMT 10 on each New
York Banking Day during the period, and will report original
issue discount on the Note to the Internal Revenue Service on
that basis. Accordingly, a holder should include in income for
any taxable year the sum of the "daily interest amounts" for each
day during such taxable year.
