Pricing Supplement No. 877 Dated 6/6/95 Rule 424(b)(3)
(To Prospectus dated October 12, 1994 and File No. 33-54929
Prospectus Supplement dated October 12, 1994) and 33-51269
This Pricing Supplement consists of 3 page(s)
SALOMON INC
Medium-Term Notes, Series D
(Registered Notes)
Due More Than Nine Months from Date of Issue
Principal Amount or Face Amount: $10,000,000.00
Issue Price: 67.5600000000%
Proceeds to Company on original issuance: $6,756,000.00
Commission or Discount on original issuance: $.00
Salomon Brothers Inc's capacity on original issuance: | | As agent
If as principal |X| 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: 6/12/95
Stated Maturity: 6/12/07
Specified Currency:
(If other than U.S. Dollars)
Authorized Denominations:
(If other than as set forth in the Prospectus Supplement)
Interest Payment Dates: Semi Annually on 6/12 & 12/12. 1st coupon
pays on 12/12/2000.
Accrue to Pay: | | Yes |X| No
Indexed Principal Note: | | Yes (See Attached) |X| No
Type of Interest on Note: |X| Fixed Rate | | Floating Rate | | Indexed Rate
(See Attached)
Interest Rate (Fixed Rate Notes): See Attached
Initial Interest Rate (Floating Rate Notes):
Base Rate: | | CD Rate | | Commercial Paper Rate | | Federal Funds Rate
| | LIBOR Telerate | | LIBOR Reuters | | Treasury Rate
| | Treasury Rate Constant Maturity | | Other (See Attached)
Calculation Agent (If other than Citibank): | | Salomon Brothers
| | Other (See Attached)
Computation of Interest: |X| 30 over 360 | | Actual over Actual
| | Actual over 360 | | Other (See Attached)
(If other than as set forth in the Prospectus Supplement)
Interest Reset Dates:
Rate Determination Dates:
(If other than as set forth in the Prospectus Supplement)
Index Maturity:
Spread (+/-):
Spread Multiplier:
Change in Spread, Spread Multiplier or Fixed Interest Rate prior
to Stated Maturity: |X| Yes (See Attached) | | No
Maximum Interest Rate:
Minimum Interest Rate:
Amortizing Note: | | Yes (See Attached) |X| No
Optional Redemption: |X| Yes | | No
Optional Redemption Dates: Callable commencing 6/12/2000 or any interest
payment date thereafter upon 30 calendar days
notification (see attached)
Redemption Prices: 100%
Redemption: | | In whole only and not in part |X| May be in whole or in part
Optional Repayment: | | Yes |X| No
Optional Repayment Dates:
Optional Repayment Prices:
Discount Note: |X| Yes | | No
Total Amount of OID: $3,244,000
Yield to Maturity: 8.0%
Pricing Supplement No. D877
Pricing Supplement dated June 6, 1995
(to Prospectus Supplement dated October 12, 1994
to Prospectus dated October 12, 1994)
DESCRIPTION OF THE NOTES
General
The description in this Pricing Supplement of the
particular terms of the Registered Zero Coupon Step-Up 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 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):
0.0% (no interest), from June 12, 1995 to but not including
June 12, 2000;
9.00% from June 12, 2000 to but not including June 12, 2007.
The Notes may be redeemed on June 12, 2000 or any Interest
Payment Date thereafter, Accordingly, there is no assurance that
the Notes will ever bear interest at a rate of 9.00%.
Redemption
The Company may exercise its right of Optional
Redemption with respect to the Notes on June 12, 2000 or any
Interest Payment Date thereafter (such date an "Optional
Redemption Date"), by notifying the Trustee of its exercise of
such option at least 30 calendar days prior to the Optional
Redemption Date. At least 30 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 Depositary's nominee, as sole Holder of the Notes
under the Indenture. The Depositary will distribute any such
notice to the owners of beneficial interests in the Notes in
accordance with its regular practice.
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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.
The Notes will be issued with original issue discount
("OID") for U.S. federal income tax purposes. For purposes of
calculating the amount and accrual of OID on the Notes, it is
assumed that the Company will exercise its right to redeem the
Notes on June 12, 2000, at par. Accordingly, the Notes will be
considered for U.S. federal income tax purposes to have OID equal
to the difference between their redemption price (i.e., their par
amount) and their issue price (as defined in the Prospectus
Supplement) and a holder of Notes will be required to include in
income for U.S. federal income tax purposes this amount of OID as
it accrues, from the date of issue of the Notes to the early
redemption date (as if the Notes matured on June 12, 2000), in
accordance with a constant yield method based on a compounding of
interest, before the receipt of cash payments attributable to
such income, regardless of the holder's regular method of
accounting for U.S. federal income tax purposes.
In the event that the Company does not exercise its right to
redeem all of the Notes on June 12, 2000, any Note that remains
outstanding will be treated solely for purposes of applying the
OID rules (and not for purposes of recognizing gain or loss), as
if it was reissued on June 12, 2000, at par. Any such Note will
be treated as issued without OID and all payments of stated
interest on such Note to a holder will be taxable as ordinary
interest income, as it accrues or is paid, in accordance with
such holder's method of accounting for U.S. federal income tax
purposes.
