Pricing Supplement No. 797 Dated 12/20/94 Rule 424(b)(3)
(To Prospectus dated October 12, 1994 and File No. 33-51269,
Prospectus Supplement dated October 12, 1994) 33-57922 and 33-49136
This pricing supplement consists of 3 pages.
SALOMON INC
Medium-Term Notes, Series D
(Registered Notes - Fixed Rate)
Due More Than Nine Months from Date of Issue
Principal Amount or Face Amount: $5,000,000.00
Issue Price: 100.0000000000%
Proceeds to Company on original issuance: $5,000,000.00
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: 12/30/94
Stated Maturity: 12/30/04
Specified Currency:
(If other than U.S. Dollars)
Authorized Denominations: $1,000.00
(If other than as set forth in the Prospectus Supplement)
Interest Payment Dates: Monthly on last day of month. 1st coupon 1/31/95.
(If other than as set forth in the Prospectus Supplement)
Indexed Principal Note: | | Yes (see attached) |X| No
Interest Rate: See Attached
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
Amortization Schedule:
Optional Redemption: |X| Yes | | No
Optional Redemption Dates: See Attached
Redemption Prices: 100%
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 No. D 797
Pricing Supplement dated December 20, 1994
(to Prospectus Supplement dated October 12, 1994
to Prospectus dated October 12, 1994)
DESCRIPTION OF THE NOTE
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 descriptions reference is hereby
made.
"New York Business 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 Rate
The Fixed Rate Notes to which this Pricing Supplement
relates bear interest at a rate that varies in accordance with
the following schedule (unless earlier redeemed at the option of
the Company, as provided below and on the front of this Pricing
Supplement):
9.000%, from December 30, 1994 to but not including December
31, 1996;
9.250%, from December 31, 1996 to but not including December
30, 2004.
Interest on the Notes will be computed on the basis of a 360-day
year of twelve 30-day months ("30 over 360").
The Notes may be redeemed on any Interest Payment Date
on or after December 31, 1996. Accordingly, there is no
assurance that the Notes will ever bear interest at a rate above
9.000%.
Interest Payments
If an Interest Payment Date with respect to the Notes
would otherwise be a day that is not a New York Business Day,
such Interest Payment Date shall not be postponed, provided,
however, that 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 Business Day need not be made on such date, but
may be made on the next succeeding New York Business 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.
Redemption
The Company may exercise its right of Optional
Redemption with respect to the Note on any Interest Payment Date
occuring on or after December 31, 1996 (such date an "Optional
Redemption Date"), by notifying the Trustee of its exercise of
such option at least 15 calendar days prior to the Optional
Redemption Date. At least 15 calendar days but not more than 60
calendar days prior to such Optional Redemption Date, the Trustee
shall mail notice of such redemption, first class, postage
prepaid, to the Holder of the Note.
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.
Pursuant to the OID Regulations, for purposes of
determining the existence and the amount of original issue
discount on the Notes, it is assumed that the Company will
exercise its right to redeem the Notes on December 31, 1996. In
the event the Company does not redeem the Notes on December 31,
1996, the Notes will be treated solely for purposes of applying
the OID rules (and not for purposes of recognizing gain or loss),
as if they were reissued on such date at par. Accordingly, the
Notes will be treated as issued with no OID and all payments of
stated interest on the Notes will be treated as ordinary interest
income that will be includible in income when received or accrued
in accordance with a U.S. holder's method of accounting.
The IRS may contend under an anti-abuse rule that the
Notes should be treated as issued with substantial amounts of
OID, in which case U.S. holders would be required to include such
OID in income for U.S. federal income tax purposes as it accrues
in accordance with a constant yield method based on a compounding
of interest, regardless of the U.S. holder's regular method of
accounting for U.S. federal income tax purposes. The Company
believes that the anti-abuse rule will not apply, and intends to
treat the Notes for all purposes (including its OID reporting
obligations) as issued with no OID.
