Pricing Supplement No. Euro D86 Dated 2/18/94 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: $5,000,000.
Issue Price: 100%
Proceeds to Company on original issuance: $5,000,000.
Commission or Discount on original issuance: 0
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: February 22, 1994
Stated Maturity: February 22, 1999
Specified Currency: U.S. Dollars
(If other than U.S. Dollars)
Authorized Denominations:
(If other than as set forth in the Prospectus Supplement)
Interest Payment Dates:22nd day of February, May, August and November
commencing May 22, 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: See Attached
Base Rate: | | CD Rate | | Commercial Paper Rate | | Federal Funds Rate
| | LIBOR Telerate | | Libor Reuters | | Treasury Rate
| | Treasury Rate Constant Maturity | | Other (see attached)
Interest Reset Period or Interest Reset Dates: See Attached
Optional Reset Dates (if applicable):
Index Maturity:
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).
Maximum Interest Rate: See Attached
Minimum Interest Rate: See Attached
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 February 18, 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 Bearer Note offered hereby (the "Accrual
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 description reference is hereby
made. Capitalized terms used but not otherwise defined herein
shall have the meanings specified in the Prospectus and
Prospectus Supplement.
"Base Rate" means LIBOR Telerate with an Index Maturity
of three months. The Base Rate as in effect on any calendar day
will be determined as of the second preceding day that is a New
York and London Banking Day.
"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. "New York and London Banking
Day" means a New York Banking Day that is a day on which dealings
in deposits in U.S. dollars are transacted in the London
interbank market.
Interest
From and including the Original Issue Date to and
including February 21, 1996, the Accrual Note will bear interest
at a rate equal to (a) 7.15% per annum on each calendar day on
which the Base Rate is not greater than the Strike Rate
applicable to such calendar day and (b) 0.0% on each calendar day
on which the Base Rate is greater than the Strike Rate applicable
to such Calendar Day. From and including February 22, 1996 to
but not including Stated Maturity, the Accrual Note will bear
interest at a rate equal to the product of (a) 7.15% per annum
and (b) a fraction having "Strike Days" (as defined below) as the
numerator and 365 as the denominator.
The term "Strike Days" means the number of calendar
days from and including February 22, 1995 to and including
February 21, 1996 on which the Base Rate is not greater than the
Strike Rate applicable to such calendar day.
The amount of interest payable on the Accrual Note will
be computed by dividing the interest rate in effect on each day
by 365.
For each calendar day, the applicable Strike Rate is as
set forth below:
Calendar Day
from and including to and including Strike Rate
February 22, 1994 August 21, 1994: 4.25%
August 22, 1994 February 21, 1995: 4.75%
February 22, 1995 August 21, 1995: 5.50%
August 22, 1995 February 21, 1996: 6.25%
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 Accrual Note 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 Base Rate and the Strike Days will be determined by
Salomon Brothers Inc, a wholly-owned subsidiary of the Company,
which will act as Calculation Agent for the Accrual Note.
INVESTMENT CONSIDERATIONS
Purchasers of the Accrual Note should be prepared to
accept the risk that the Accrual Note will not pay interest for
certain periods or for its entire term to Stated Maturity. In
particular, if on any calendar day from the Original Issue Date
to February 21, 1996, the Base Rate exceeds the Strike Rate
applicable to such day (which may be the case on every day during
this period), no interest will be payable with respect to such
day. Further, if the Base Rate exceeds the Strike Rate on every
calendar day from February 22, 1995 to February 21, 1996, not
only would no interest be payable on the Accrual Note with
respect to such year, but also no further interest would be
payable on the Accrual Note with respect to the three following
years.
