Pricing Supplement No Euro D 165 Dated 6/12/95 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 4 page(s)
SALOMON INC
Medium-Term Notes, Series D
(Bearer Notes)
Due More Than Nine Months from Date of Issue
Principal Amount or Face Amount: $6,000,000.00
Issue Price: 100.0000000000%
Proceeds to Company on original issuance: $5,985,000.00
Commission or Discount on original issuance: $15,000.00
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: 6/15/95
Stated Maturity: 6/16/98
Specified Currency:
(If other than U.S. Dollars)
Authorized Denominations: USD 1,000,000.00
(If other than as set forth in the Prospectus Supplement)
Interest Payment Dates: Annually on 6/16.
Accrue to Pay: | | Yes |X| No
Indexed Principal Note: |X| Yes (See Attached) | | No
Type of Interest on Note: | | Fixed Rate | | Floating Rate |X| Indexed Rate
(See Attached)
Interest Rate (Fixed Rate Notes):
Initial Interest Rate (Floating Rate Notes): See Attached
Base Rate: | | CD Rate | | Commercial Paper Rate | | Federal Funds Rate
| | LIBOR Telerate | | LIBOR Reuters | | Treasury Rate
| | Treasury Rate Constant Maturity |X| Other (See Attached)
Calculation Agent (If other than Citibank): |X| 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: On Interest Payment Dates.
Rate Determination Dates: 5 business days prior to Interest Payment Dates.
(If other than as set forth in the Prospectus Supplement)
Index Maturity: See Attached
Spread (+/-): See Attached
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: 6/16/97 (See Attached)
Redemption Prices: 100%
Redemption: |X| In whole only and not in part | | May be in whole or in part
Optional Repayment: | | Yes |X| No
Optional Repayment Dates:
Optional Repayment Prices:
Discount Note: | | Yes |X| No
Total Amount of OID:
Yield to Maturity:
Listed on Luxembourg Stock Exchange: | | Yes |X| No
Pricing Supplement No. Euro D165
Supplement dated June 12, 1995
(to Prospectus Supplement dated October 12, 1994,
to Prospectus dated October 12, 1994)
DESCRIPTION OF THE NOTE
General
The following description of the particular terms of
the Bearer Note offered hereby (the "FX 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 Supplement, to which description
reference is hereby made.
"Tokyo Business Day" with respect to the FX Note 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 Tokyo, Japan.
"Business Day" with respect to the FX Note 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 (i) New York, New York, in the United
States, (ii) London, England or (iii) Tokyo, Japan.
Redemption
The Company may exercise its right of Optional
Redemption with respect to the Notes on the Interest Payment Date
occuring on June 16, 1997 (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.
Payment of Interest and Principal
The amount of interest payable on each of the Interest
Payment Dates occuring on June 16, 1996 and June 16, 1997, with
respect to the Interest Period ending on the previous day, shall
be an amount equal to the product of (i) the Face Amount, (ii)
1.85% per annum (calculated on the basis of a 360-day year of
twelve 30-day months) and (iii) a fraction having (x) a numerator
equal to 84.00 and (y) a denominator equal to the "FX Rate" (as
defined below) with respect to such Interest Payment Date.
The amount of interest payable on the Interest Payment
Date coinciding with Stated Maturity, with respect to the
Interest Period ending on the previous day, shall be an amount
equal to the product of (i) the Face Amount, (ii) 2.40% per annum
(calculated on the basis of a 360-day year of twelve 30-day
months) and (iii) a fraction having (x) a numerator equal to
84.00 and (y) a denominator equal to the "FX Rate" (as defined
below) with respect to such Interest Payment Date.
The amount of principal payable at Stated Maturity of
the FX Note will be an amount equal to the product of the Face
Amount of the Note and a fraction having (x) a numerator equal to
84.00 and (y) a denominator equal to the FX Rate with respect to
Stated Maturity.
The FX Rate, with respect to any Interest Payment Date
or Stated Maturity, means the number of yen (calculated to two
decimal places) required to purchase one U.S. dollar as
determined by the FX Rate Agent on the basis of the Tokyo
Telegraphic Middle Rate at 10:00 a.m. (Tokyo time) on the [fifth]
Tokyo Business Day preceding the relevant Interest Payment Date
or Stated Maturity. The "Tokyo Telegraphic Middle Rate" for any
day and time means the rate of exchange generally prevailing on
the Tokyo foreign exchange market on such day and at such time
for the spot sale to retail customers of telegraphic transfers of
dollars against yen. The FX Rate Agent will be Salomon Brothers
Asia Limited, a wholly-owned indirect subsidiary of the Company.
The following table sets forth, for the hypothetical FX
Rates indicated, (i) the rate of interest that would be payable
on the Face Amount of the FX Note for the related Interest Period
and (ii) the amount of principal that would be payable at Stated
Maturity for $100 Face Amount of the FX Note. The information
presented below is furnished solely for purposes of illustration,
and no representation is made that any actual FX Rate will be
equal to, or less than, or greater than, any of the hypothetical
FX Rates indicated.
<PAGE>
Interest Period Interest Period Principal Payable
Hypothetical ended June 16, ended June 16 at Stated Maturity
FX Rate 1996 and 1997 1998 per $100 Face Amount
69.5 2.236% 2.901% $120.86
72.5 2.143 2.781 115.86
75.5 2.058 2.670 111.26
78.5 1.980 2.568 107.01
81.5 1.907 2.474 103.07
84.5 1.839 2.386 99.41
87.5 1.776 2.304 96.00
90.5 1.717 2.228 92.82
93.5 1.662 2.156 89.84
96.5 1.610 2.089 87.05
99.5 1.562 2.026 84.42
102.5 1.516 1.967 81.95
105.5 1.473 1.911 79.62
108.5 1.432 1.858 77.42
The table above shows that both the interest and the
principal return on the FX Note will vary as the FX Rate varies.
In particular, the return on the FX Note will decline as the
Japanese yen depreciates in value against the U.S. dollar.
If the Japanese yen should depreciate in value against
the U.S. dollar such that the FX Rate is greater than 84.00 with
respect to Stated Maturity, the amount of principal payable to
the Holder of the FX Note at Stated Maturity would be less than
the Face Amount of the FX Note. In addition, if the FX Rate with
respect with any Interest Payment Date, including the Interest
Payment Date that coincides with Stated Maturity, is greater than
84.00, the rate of interest payable with respect to the Interest
Period ending on the day preceding such Interest Payment Date,
would be less than (i) 1.85% with respect to Interest Payment
Dates occuring on June 16, 1996 and June 16, 1997 and (ii) 2.40%
with respect to the Interest Payment Date coinciding with Stated
Maturity.
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 sole bank of issue.
On June 9, 1995, 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 JPY 84.40 = $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
important to international trade and finance. In recent years,
rates of exchange between the U.S. dollar and the Japanese yen
have been highly volatile.
