Pricing Supplement No. 796 Dated 11/9/94 Rule 424(b)(3)
(To Prospectus dated October 12, 1994 and File No. 33-54929
Prospectus Supplement dated October 12, 1994)
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: $10,000,000.00
Issue Price: 100.0000000000%
Proceeds to Company on original issuance: $10,000,000.00
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: 11/15/94
Stated Maturity: 11/15/04
Specified Currency:
(If other than U.S. Dollars)
Authorized Denominations: $1,000 and integral multiples thereof
(If other than as set forth in the Prospectus Supplement)
Interest Payment Dates: Monthly, on the 15th of each month.
1st coupon pays 12/15/94.
(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: Each interest payment date, commencing
11/15/96 upon 15 calendar days notification
(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 dated November 9, 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.
Interest Rate
The Fixed Rate Notes to which this Pricing Supplement
relates bears an interest 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):
8.750%, from November 15, 1994 to but not including November
15, 1996;
8.875%, from November 15, 1996 to but not including November
15, 1997;
9.000%, from November 15, 1997 to but not including November
15, 1998;
9.125%, from November 15, 1998 to but not including November
15, 1999;
9.250%, from November 15, 1999 to but not including November
15, 2000;
9.500%, from November 15, 2000 to but not including November
15, 2001;
9.750%, from November 15, 2001 to but not including November
15, 2002;
10.000%, from November 15, 2002 to but not including
November 15, 2003; and
11.000%, from November 15, 2003 to but not including
November 15, 2004.
The Notes may be redeemed on any Interest Payment Date
on or after November 15, 1996. Accordingly, there is no
assurance that the Notes will ever bear interest at a rate above
8.750%.
Redemption
The Company may exercise its right of Optional Redemption
with respect to the Note on any Interest Payment Date occuring on
or after November 15, 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 November 15, 1996 (and
in the event that the Company does not exercise its right to
redeem on November 15, 1996, it will be assumed that the Company
will exercise its right to redeem the Notes on any succeeding
Interest Payment Date on which the Notes remain outstanding). In
the event the Company does not redeem the Notes on any Interest
Payment Date, 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 any Interest Payment 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.
