Pricing Supplement No. 707 Dated 2/09/94 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: $75,000,000.00
Issue Price: 100.0000000000%
Proceeds to Company on original issuance: $75,000,000.00
Commission or Discount on original issuance: $.00
Salomon Brothers Inc's capacity on original issuance: |X| As agent
| | As principal
If as principal:
| | 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: 2/16/94
Stated Maturity: 12/20/94
Specified Currency:
(If other than U.S. Dollars)
Authorized Denominations:
(If other than as set forth in the Prospectus Supplement)
Interest Payment Dates: 6/20, 9/20, 12/20. 1st cpn 6/20/94.
(If other than as set forth in the Prospectus Supplement)
Indexed Principal Note: |X| Yes (see attached) | | No
Floating Rate: |X| Indexed Rate: | | (see attached)
Initial Interest Rate: 3.3925000%
Base Rate: | | CD Rate | | Commercial Paper Rate | | Federal Funds Rate
|X| LIBOR Telerate | | LIBOR Reuters | | Treasury Rate
| | Treasury Rate Constant Maturity | | Other (see attached)
Interest Reset Period or Interest Reset Dates:
6/20, 9/20/94.
Index Maturity: 3 month libor
Spread (+/-): -17b.p.
Spread Multiplier:
Spread Reset: |X| 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: 4.0000000%
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: |X| Yes | | No
Total Amount of OID:
Yield to Maturity:
Pricing Supplement dated February 15, 1994
(to Prospectus Supplement dated December 14, 1993,
to Prospectus dated December 14, 1993)
DESCRIPTION OF THE NOTE
General
The description in this Pricing Supplement of the
particular terms of the Registered Indexed Principal Note offered
hereby (the "Note") 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.
Indexed Principal
The Principal Amount payable at Stated Maturity of the
Note will be (i) 100.8% of the Face Amount if the Calculation
Agent for the Note determines that LIBOR Telerate in the Index
Maturity for German Deutsche Marks is more than 28 basis points
higher than LIBOR Telerate in the Index Maturity for U.S. Dollars
on the Indexed Principal Determination Date (as defined below)
and (ii) otherwise 100.0% of the Face Amount of the Note.
The Indexed Principal Determination Date means December
19, 1994 or the immediately preceding day that is a day on which
commercial banks are open for business in New York, New York,
London, England and Frankfurt, Germany. The Index Maturity, as
specified on the front of this Pricing Supplement, is three (3)
months.
LIBOR Telerate for German Deutsche Marks will be
determined by the same methodology as LIBOR Telerate for U.S.
dollars.
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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 in the Federal Register 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 short-term debt instrument that
is a variable rate debt instrument providing for alternative
payment schedules. The Company intends to treat the Note as
providing for original issue discount in an amount equal to
interest on the Note accrued at a rate equal to the lesser of
(i) LIBOR on the issue date minus 17 basis points or (ii) four
percent.
