Pricing Supplement No. 256 Dated 1/30/96 Rule 424(b)(3)
(To Prospectus dated October 12, 1994) File No. 33-54929
This Pricing Supplement consists of 3 pages
SALOMON INC
Notes, Series G
Due More Than Nine Months from Date of Issue
Fixed Rate
Principal Amount: $8,000,000.00
Issue Price: 70.89%
Original Issue Date: 2/13/96
Stated Maturity: 2/13/08
Interest Rate: See attached
Interest Payment Dates:
| | Monthly
| | Quarterly
|X| Semi-annually, on 13th day of February and August. 1st coupon
pays on 8/13/2001. The amount of interest payable on each interest
payment date will be computed on the basis of a 360 day year
consisting of twelve 30 day months.
Amortizing Note: | | Yes |X| No
Amortization Schedule:
Optional Redemption: |X| Yes | | No
Optional Redemption Dates: On coupon payment dates commencing 2/13/2001 upon
30 calendar days notification (see attached)
Redemption Prices: 100.00%
Redemption: | | In whole only and not in part |X| May be in whole or in part
Discount Note: |X| Yes | | No
Total Amount of OID: $2,328,800.00
Yield to Maturity: 7.524%
Survivor's Option: |X| Yes | | No
Per Note Total
-------- -----
Proceeds to Salomon Inc: 70.89% $5,671,200.00
CUSIP: 79549GZL3
Pricing Supplement No. 256
Pricing Supplement dated January 30, 1996
(to Prospectus dated October 12, 1994)
DESCRIPTION OF THE NOTES
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 description of the general terms
and provisions of the Registered Notes set forth in the accompanying
Prospectus, 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):
0.000%, (no interest) from February 13, 1996 to but not including
February 13, 2001;
8.000%, from February 13, 2001 to but not including February 13, 2008.
The Notes may be redeemed on any Interest Payment Date on or after
February 13, 2001. Accordingly, there is no assurance that the Notes will
ever bear interest at a rate of 8.000%.
Redemption
The Notes will be redeemable at the option of the Company, in whole or
in any part thereof, at par (such redemption an "Optional Redemption"), on any
Interest Payment Date occurring on or after February 13, 2001 (such date an
"Optional Redemption Date"). The Company may exercise its right of Optional
Redemption 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.
Plan of Distribution
The Company intends to sell the Notes at a price equal to principal
amount thereof to the Underwriter for its own account or for resale to one or
more purchasers, including dealers, at varying prices related to prevailing
market prices at the time of resale, as determined by the Underwriter. Notes
sold by the Underwriter to a dealer may be resold at varying prices related to
prevailing market prices at the time of resale.
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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 February 13, 2001, 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 February 13, 2001), 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 February 13, 2001, 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 February 13, 2001, 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.
