Pricing Supplement No. Euro D110 Dated 7/18/94 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--Floating Rate or Indexed Rate)
Due More Than Nine Months from Date of Issue
Principal Amount or Face Amount: Yen 1,000,000,000
Issue Price: 100%
Proceeds to Company on original issuance: Yen 997,500,000
Commission or Discount on original issuance: Yen 2,500,000
Salomon Brothers International Limited's capacity on original issuance:
|x| As agent | | As principal
If as principal:
| | The Bearer Notes are being offered at varying prices related to
prevailing market prices at the time of resale.
| | The Bearer Notes are being offered at a fixed initial public
offering price of % of Principal Amount or Face Amount.
Original Issue Date: 7/20/94
Stated Maturity: 10/20/97
Specified Currency: Yen
(If other than U.S. Dollars)
Authorized Denominations: Yen 10,000,000
(If other than as set forth in the Prospectus Supplement)
Interest Payment Dates: April 20 and October 20, beginning October 20, 1994
(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: 3.10%, calculated on the basis of a 360 day year of
twelve 30-day months.
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 Dates: October 20, 1995
Optional Reset Dates (if applicable):
Index Maturity: See Attached
Spread (+/-):
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).
Maximum Interest Rate:
Minimum Interest Rate: 0%
Amortizing Note: | | Yes |x| No
Amortizing Schedule:
Optional Redemption: |X| Yes | | No Redemption must be in whole, but not
in part upon 30 days notification.
Optional Redemption Dates: October 20, 1995
Redemption Prices: 100%
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 July 18, 1994
(to Prospectus Supplement dated December 14, 1993
to Prospectus dated December 14, 1993)
RISK FACTORS
The interest rate on this Note is inversely linked to
"2 Year TSR" (as defined below), and will decline as "2 Year TSR"
increases, although it will never decline below 0%. If "2 Year
TSR" is equal to or greater than 10.00% on the tenth Tokyo
Business Day preceding October 20, 1995, the Note will earn no
interest for the period subsequent to October 20, 1995. Holders
of the Note should be prepared not to earn any interest after
October 20, 1995.
DESCRIPTION OF THE NOTE
General
The description in this Pricing Supplement of the
particular terms of the Bearer Note offered hereby (the "Note")
supplements, and to the extent inconsistent therewith replaces,
the descriptions of the general terms and provisions of the
Bearer Notes set forth in the accompanying Prospectus and
Prospectus Supplement, to which descriptions reference is hereby
made.
A "Tokyo Business Day" and a "London Business Day" mean
a day in which commercial banks in Tokyo, Japan and London,
England, respectively, are open for business (including dealings
in foreign exchange and foreign currency deposits).
Interest
From October 20, 1995, the Note will bear interest at a
rate equal to (i) 10.00% minus (ii) "2 Year TSR". "2 Year TSR"
means, with respect to any Interest Reset Date, the 2 year Tokyo
Swap Reference Rate quoted on Telerate Screen 17143 (or any
successor screen thereto) determined as of 10:00 a.m. Tokyo time
on the tenth Tokyo Business Day preceding October 20, 1995.
However, if the rate described in the preceding sentence does not
appear on any such tenth preceding Tokyo Business Day, 2 Year TSR
shall mean the arithmetic mean (rounded, if necessary, to the
nearest one-hundreth of one percent) of the "2 Year Tokyo Yen to
Yen swaps mid-rate" (calculated on a semi-annual basis and
Actual/365 (Fixed)), calculated by reference to the bid and offer
rates which appear on Telerate Pages 6493, 9766, 17112, 17118 and
19902 (and any successors thereto) on the relevant Tokyo Business
Day. If three or more quotations are available on such pages,
the Calculation Agent shall use all such available quotations in
calculating the arithmetic mean. If fewer than three quotations
are available on such pages, "2 Year Tokyo Yen to Yen swaps mid-
rate" shall mean the arithmetic mean (rounded, if necessary to
the nearest one-hundredth of one percent) of 2 Year Tokyo Yen to
Yen swaps mid-rates (calculated on a semi-annual basis and
Actual/365 (Fixed)) offered by the Reference Banks on the next
succeeding Tokyo Business Day that is also a London Business Day.
"Reference Banks" means four major banks in the London,
England interbank market.
DESCRIPTION OF JAPANESE YEN
The yen is the national currency of Japan. Japanese
bank notes are issued by The Bank of Japan, which was established
in 1882 and is the country's central bank and the sole bank of
issue. On July 15, 1994, the noon buying rate for cable
transfers in New York City payable in yen, as reported by the
Federal Reserve Bank of New York, was Yen 98.10 = $1.00.
The exchange rate between the yen and the dollar is at
any moment a result of the supply of and the demand for the two
currencies, and changes in the rate result over time from the
interaction of many factors directly or indirectly affecting
economic conditions in Japan and in the United States, including
economic and political developments in other countries. Of
particular importance are rates of inflation, interest rate
levels, the balance of payments (both on capital and current
account) and the extent of governmental surpluses or deficits in
Japan and in the United States, all of which are in turn
sensitive to the monetary, fiscal and trade policies pursued by
the governments of Japan, the United States and other countries
prominent in international trade and finance. In recent years,
rates of exchange between the U.S. dollar and the Japanese yen
have been highly volatile.
