Pricing Supplement No. 868 Dated 4/26/95 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: $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
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: 5/15/95
Stated Maturity: 5/15/00
Specified Currency:
(If other than U.S. Dollars)
Authorized Denominations:
(If other than as set forth in the Prospectus Supplement)
Interest Payment Dates: Monthly, on 15th. 1st coupon pays 6/15/95.
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: See Attached
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: On coupon payment dates commencing 5/15/96 upon
15 calander 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: | | Yes |X| No
Total Amount of OID:
Yield to Maturity:
Pricing Supplement No. D868
Pricing Supplement dated April 26, 1995
(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):
7.625%, from May 15, 1995 to but not including May 15, 1996;
7.750%, from May 15, 1996 to but not including May 15, 1997;
7.875%, from May 15, 1997 to but not including May 15, 1998;
8.125%, from May 15, 1998 to but not including May 15, 1999;
8.500%, from May 15, 1999 to but not including May 15, 2000.
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 May 15, 1996. Accordingly, there is no assurance
that the Notes will ever bear interest at a rate above 7.625%.
<PAGE>
Redemption
The Company may exercise its right of Optional
Redemption with respect to the Note on any Interest Payment Date
occuring on or after May 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 May 15, 1996 (and in
the event that the Company does not exercise its right to redeem
on May 15, 1996) it will be assumed that the Company will
exercise its right to redeem the Notes on any succeeding Interest
Payment Date occuring in May (a "May Interest Payment Date") on
which the Notes remain outstanding). In the event the Company
does not redeem the Notes on any May 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 May 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.
