Pricing Supplement No. Euro D87 Dated 3/31/94 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
(Bearer Notes--Fixed Rate)
Due More Than Nine Months from Date of Issue
Principal Amount or Face Amount: ITL 10 BILLION
Issue Price: 100%
Proceeds to Company on original issuance: 97.48%
Commission or Discount on original issuance: 2.52%
Salomon Brothers International Limited's capacity on original issuance:
| | As agent |x| As principal
If as principal:
| | The Bearer Notes are being offered at varying prices related to
prevailing market prices at the time of resale.
|x| The Bearer Notes are being offered at a fixed initial public
offering price of 100% of Principal Amount or Face Amount.
Original Issue Date: 3/31/94
Stated Maturity: 4/1/97
Specified Currency: Italian Lire ("ITL")
(If other than U.S. Dollars)
Authorized Denominations: ITL 2 Billion
(If other than as set forth in the Prospectus Supplement)
Interest Payment Dates: April 1, commencing April 1, 1995
(If other than as set forth in the Prospectus Supplement)
Indexed Principal Note: |x| Yes (see attached) | | No
Interest Rate: 2% per annum
Interest Rate Reset: |x| The Interest Rate may not be changed prior to Stated
Maturity.
| | The Interest Rate may be changed prior to Stated
Maturity (see attached).
Optional Reset Dates (if applicable):
Amortizing Note: | | Yes |x| No
Amortizing Schedule:
Optional Redemption: | | Yes |x| No
Optional Redemption Dates:
Redemption Prices:
Optional Repayment: | | Yes |x| No
Optional Repayment Dates:
Optional Repayment Prices:
Discount Note: | | Yes |x| No
Total Amount of OID:
Yield to Maturity:
Pricing Supplement dated March 31, 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 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 hereby is
made. Capitalized terms used but not otherwise defined herein
shall have the meanings specified in the Prospectus and
Prospectus Supplement.
The Calculation Agent for the Note will be Salomon
Brothers International Limited or an affiliate of Salomon
Brothers International Limited.
Application has been made to list the Note on the
Luxembourg Stock Exchange.
Indexed Principal Amount
The Note is an Indexed Principal Note. The principal
amount payable at Stated Maturity of the Note (the "Indexed
Principal Amount") is to be determined in accordance with the
formula and defined terms set out below:
;provided, however, that in no event shall IPA be less than FA.
"IPA" means the Indexed Principal Amount payable at
Stated Maturity of the Note.
"FA" means the Face Amount of the Note.
"End Strike" means the lesser of (i) 215.84 and (ii)
the arithmetic average, calculated on the Determination Date, of
the value of the BCI 30 Index at the close of trading on each
Thursday (or in the event such day is not a Trading Day on the
next succeeding Trading Day) commencing on Thursday, September
26, 1996 and ending on Thursday, March 27, 1997.
"Strike" means 154.17.
"Determination Date" means March 28, 1997.
"Trading Day" means a day on which Banca Commerciale
Italiana ("BCI") publishes a value for the BCI 30 Index.
"BCI 30 Index" means the BCI 30 Index published by BCI
described below, or, in the event BCI discontinues publication of
the BCI 30 Index, any successor or substitute index that the
Calculation Agent determines, in its sole discretion, is
comparable to the BCI 30 Index (a "Successor Index"). In the
event that BCI discontinues publication of the BCI 30 Index and
there is no Successor Index, the Calculation Agent in its sole
discretion shall calculate the value of the BCI 30 Index based on
the formulas and methods used to calculate the BCI 30 Index as of
the Issue Date.
The table below sets forth the Indexed Principal Amount
as a percentage of the Face Amount that will be payable for
certain hypothetical End Strikes. The hypothetical End Strikes
set forth below are for illustrative purposes only and no
representation is made or intended that the End Strike as of the
Determination Date will be equal to or within the hypothetical
End Strikes set forth below.
Hypothetical End Strike IPA as % of Face Amount
215.84 140.00
210 136.21
200 129.73
195 126.48
190 123.24
185 119.99
180 116.75
175 113.51
170 110.27
165 107.02
160 103.78
154.17 100
The BCI 30 Index
The information contained herein on the BCI 30 Index is
derived from materials published by BCI. Such information
reflects the policies of BCI as stated in such sources and such
policies are subject to change at the discretion of BCI.
The BCI 30 Index is a stock exchange index calculated
throughout the day by the Financial Analysis Unit of BCI. The BCI
30 Index summarizes the prices of thirty Italian issues quoted on
the Milan Stock Exchange or traded on the Telematic Market (the
"Constituent Shares"). The BCI 30 Index was first published in
May 1993 and is reported through Reuters and the main Italian
financial newspapers II Sole-24 Ore and Milano Finaza.
The value of the BCI 30 Index is calculated by
multiplying the overall capitalization of the Constituent Shares,
expressed in millions of Italian lire, by a multiplier which is
presently equal to 0.0000008908. The Constituent Shares, the
numbers of such shares and the multiplier are subject to change.
The Constituent Shares included in the BCI 30 Index are selected
at the outset of the calendar year, using the following data
calculated for each listed share:
ADVol (Average Daily Volume): the nominal volume of trades in the
security carried out on the exchange during the entire preceding
calendar year, divided by the number of days on which the share
was listed.
ADCap (Average Daily Capitalization): the sum of daily market
capitalizations realized by the security throughout the preceding
calendar year, divided by the number of days on which the security
was listed.
ILC (Indicator of Liquidity and Capitalization): ADCap + A*ADVol
in which A indicates the average daily ratio between (a)
capitalization and (b) volume of trades realized in the entire
market during the preceding calendar year. The definition of ILC
aims at equally weighing liquidity (identified with the volume of
trades) and capitalization.
At this point the following securities are excluded from
participation in the BCI 30 Index;
(i) multiple categories issued by the same company, with
the exception of that with the highest ILC;
(ii) those whose ration between ADVol and ADCap does not
exceed a very low threshold (0.01%) denoting liquidity of the
share;
(iii) those for which reasonable certainty exists that their
liquidity and/or capitalization will be lost during the
current year (e.g. due to outstanding tender offers, mergers
etc.);
(iv) those first quoted after November of the previous
year.
The remaining shares are ranked in decreasing order of
ILC and the first thirty constitute the BCI 30. The next issues,
also ordered by ILC, are kept as reserves.
The procedure which has just been outlined defines the
"normal" rotation of securities. Obviously, exceptional events
can occur (such as the delisting of a security) which would
mandate removing a security from the BCI 30 Index. In such an
event, the security being withdrawn is substituted by the top
ranking reserve security. With the turnover of securities either
for normal reasons (i.e. every January 1) or for exceptional ones,
the index is appropriately changed so as to ensure its continuity.
Italian listed issues are basically of three types:
ordinary, preference and savings (non-voting). The BCI 30 Index
may include only one category of shares for a company, which would
be those of the highest ILC. This insulates the BCI 30 Index from
instances of instability due to facts relating to one issuing
company.
In 1994 the shares included in the "BCI 30" Index are
for the following:
Alleazza ord. Gemina ord. Pirelli S.p.A.
Banca di Roma Generali Ras ord.
B.A.V. ord. Ifi priv. Rinascente ord.
BCI ord. Ifil ord. Sai ord.
Benetton Italcementi ord. San Paolo ord.
Cir ord. Italgas Sip ord.
Credit ord. Mediobanca Sirti
Edison ord. Montedison ord. Sme
Fiat ord. Olivetti ord. Stet ord.
Fondiaria S.p.A. Parmalat ord. Toro ord.
The base value (prior to publication) of the BCI 30 Index
at December 31, 1992 was 100. The closing value of the BCI 30
Index on March 29, 1994 was 160.970. The following table provides
values for the BCI 30 (since the BCI commenced publication of the
index) as of the close of trading on each of the following
Thursdays (or in the event a Thursday was not a Trading Day, the
next succeeding Trading Day):
Date BCI 30 Index Closing Value
May 6, 1993 124.670
May 13, 1993 124.800
May 20, 1993 129.670
May 27, 1993 124.990
June 3, 1993 124.730
June 10, 1993 124.150
June 17, 1993 121.790
June 24, 1993 125.820
July 2, 1993 127.190
July 8, 1993 128.760
July 15, 1993 131.910
July 22, 1993 131.330
July 29, 1993 133.940
August 5, 1993 138.410
August 19, 1993 147.280
August 26, 1993 149.160
September 2, 1993 147.220
September 9, 1993 140.070
September 16, 1993 140.310
September 23, 1993 140.440
September 30, 1993 141.770
October 7, 1993 142.550
October 14, 1993 135.450
October 21, 1993 141.000
October 28, 1993 137.230
November 4, 1993 135.300
November 11, 1993 127.830
November 18, 1993 130.440
November 25, 1993 126.810
December 2, 1993 129.530
December 9, 1993 139.060
December 16, 1993 142.550
December 23, 1993 144.750
December 30, 1993 144.300
January 7, 1994 139.830
January 13, 1994 141.480
January 27, 1994 149.210
February 3, 1994 157.960
February 10, 1994 158.560
February 17, 1994 159.160
February 24, 1994 152.140
March 3, 1994 150.510
March 10, 1994 153.770
March 17, 1994 157.870
March 24, 1994 154.170
The historical data provided above is not an indication
of future performance of the BCI 30 Index.
The BCI 30 mark belongs to BCI and BCI accepts no
responsibility for the Note, the Constituent Shares or the result
of any calculation of return based on the BCI 30 Index. The use
of and reference to the BCI 30 Index by the Company in connection
with the Note has been approved by BCI. The Company and BCI will
enter into a licensing agreement relating to the utilization of
the BCI 30 Index.
The Company does not accept responsibility for the
computation, maintenance or publication of the BCI 30 Index nor
for the performance of the Constituent Shares.
