Pricing Supplement No Euro D 201 Dated 3/25/97 Rule 424(b)(3)
(To Prospectus dated April 5, 1996 and File No. 333-01807
Prospectus Supplement dated April 5, 1996)
This Pricing Supplement consists of 8 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: JPY 1,000,000,000
Issue Price: 100.0000000000%
Proceeds to Company on original issuance: JPY 1,000,000,000
Commission or Discount on original issuance: USD 29,000
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: March 26, 1997
Stated Maturity: March 26, 2002
Specified Currency: JPY
(If other than U.S. Dollars)
Authorized Denominations: JPY 100,000,000
(If other than as set forth in the Prospectus Supplement)
Interest Payment Dates: Annually on March 26; first coupon 3/26/98
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):
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): | | Salomon Brothers
|X| 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: See Attached
(If other than as set forth in the Prospectus Supplement)
Index Maturity: N/A
Spread (+/-): N/A
Spread Multiplier: N/A
Change in Spread, Spread Multiplier or Fixed Interest Rate prior to
Stated Maturity: | | Yes (See Attached) |X| No
Maximum Interest Rate: N/A
Minimum Interest Rate: Zero
Amortizing Note: | | Yes (See Attached) |X| No
Optional Redemption: | | Yes |X| No
Optional Redemption Dates:
Redemption Prices:
Redemption: | | 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:
Bond Yield to Call:
Bond Yield to Maturity:
Listed on Luxembourg Stock Exchange: | | Yes |X| No
Common Code: 7454023
ISIN: XS0074540237
Pricing Supplement No. Euro D 201
Supplement dated March 25, 1997 (to Prospectus Supplement
dated April 5, 1996, to Prospectus dated April 5, 1996)
DESCRIPTION OF THE NOTES
General
The following description of the particular terms of
the Bearer Notes offered hereby (the "Dual Currency Notes")
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.
"London and Tokyo Business Day" with respect to the
Dual Currency Notes 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
either (i) London, England or (ii) Tokyo, Japan.
"New York Business Day" with respect to the Dual
Currency Notes 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
New York, New York, in the United States.
"Business Day" with respect to the Dual Currency Notes
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.
The Calculation Agent will be Salomon Brothers
International Limited, which is a wholly-owned subsidiary
of Salomon Inc (the "Company"). Neither the Calculation
Agent nor the Company will have any responsibility for
errors or omissions in making calculations or
determinations in respect of the Dual Currency Notes. The
Calculation Agent shall not be an agent of the Holders of
the Dual Currency Notes, and its calculations and
determinations in respect of the Dual Currency Notes shall
(except in the case of manifest error) be final and binding
on the Company and such Holders.
Risk Factors
The Dual Currency Notes are Indexed Notes.
The amount of interest (if any) that a Holder will
receive in respect of the Dual Currency Notes on any
Interest Payment Date with respect to the Interest Period
ending on the day prior to such Interest Payment Date will
be determined by reference to the exchange rate between
the Japanese Yen and the Australian Dollar on the fifth
London and Tokyo Business Day prior to such Interest
Payment Date, as described below under "Interest".
As described more fully below under "Interest", if
the applicable exchange rate for any such Interest
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Period is equal to or below 68.7125 Japanese Yen per 1
Australian Dollar, the amount of interest payable in
respect of the Dual Currency Notes for such Interest Period
shall be zero. Holders of the Dual Currency Notes should be
prepared not to earn any interest on their principal.
The amount that a Holder will receive in respect of
principal on the Dual Currency Notes at Maturity will be
determined by reference to the exchange rate between the
Japanese Yen and the U.S. Dollar on the tenth Business Day
prior to Maturity, as described below under "Principal". As
described more fully below under "Principal", if the
applicable exchange rate at Maturity is equal to or below
121.2000 Japanese Yen per 1 U.S. Dollar, the amount payable
in respect of principal on any Dual Currency Note shall be
equal to the Face Amount of such Dual Currency Note (as
stated on the cover of this Pricing Supplement).
Interest
The amount of interest payable on any Dual Currency
Note on any Interest Payment Date with respect to the
Interest Period ending on the previous day shall be
calculated by the Calculation Agent on the basis of a
360-day year of twelve 30-day months and shall be an amount
in Japanese Yen (rounded to the nearest Yen) determined in
accordance with the formula set out below; provided,
however, that the amount of interest payable on any
Interest Payment Date shall never be less than zero.
IIA = FA times [(0.0008368201 times AU$ FX Rate) minus
0.0575]; where
"IIA" means the indexed interest amount in Japanese
Yen payable on such Interest Payment Date (rounded to the
nearest Yen).
"FA" means the Face Amount of the Dual Currency Note
(as stated on the cover of this Pricing Supplement).
"AU$ FX Rate", with respect to any Interest Period,
means the number of Japanese Yen required to purchase one
Australian Dollar, as determined by the Calculation Agent
by calculating the arithmetic mean (rounded to four decimal
places) of the bid and offer spot exchange rate between the
Japanese Yen and the Australian Dollar, as displayed on
Reuters screen "JPNU", row "11:00" (or any successor row
and page thereto) at 11:00 a.m. (London time) on the fifth
London and Tokyo Business Day preceding the relevant
Interest Payment Date.
The following table sets forth, for the hypothetical
AU$ FX Rates indicated, the amount of interest that would
be payable on 100,000,000 Japanese Yen Face Amount of the
Dual Currency Notes for the related Interest Period. The
information presented below is furnished solely for
purposes of illustration, and no representation is made
that any actual AU$ FX Rate will be equal to, or less than,
or greater than, any of the hypothetical AU$ FX Rates
indicated.
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Amount of Interest Payable
Hypothetical AU$ FX Rate on JPY 100,000,000
Face Amount
of Dual Currency Notes
68.7125 (or any lesser value) 0
69.0000 24,059
70.0000 107,741
75.0000 526,151
80.0000 944,561
85.0000 1,362,971
90.0000 1,781,381
95.0000 2,199,791
100.0000 2,618,201
105.0000 3,036,611
110.0000 3,455,021
115.0000 3,873,431
120.0000 4,291,841
The table above shows that the amount of interest
payable in respect of the Dual Currency Notes will vary as
the AU$ FX Rate varies. In particular, the amount of
interest payable in respect of the Dual Currency Notes will
decline as the Japanese yen appreciates in value against
the Australian dollar. Moreover, the amount of interest
payable in respect of the Dual Currency Notes for any
Interest Period shall be zero if the AU$ FX Rate for any
such Interest Period is equal to or below 68.7125 Japanese
Yen per 1 Australian Dollar.
Holders of the Dual Currency Notes should be prepared
not to earn any interest on their principal.
Principal
The amount payable in respect of principal on any Dual
Currency Note at Maturity shall be determined by the
Calculation Agent and shall be an amount in Japanese Yen
(rounded to the nearest Yen) equal to the product of (i)
the Face Amount of the Dual Currency Note and (ii) the
quantity 1 plus a fraction having (x) a numerator equal to
the greater of (A) the quantity (US$ FX Rate (as defined
below) minus 121.2000) and (B) zero and (y) a denominator
equal to 121.2000.
"US$ FX Rate", with respect to Maturity, means the
number of Japanese Yen required to purchase one United
States Dollar, as determined by the Calculation Agent by
calculating the arithmetic mean (rounded to four decimal
places) of the bid and offer spot exchange rate between the
Japanese Yen and the United States Dollar, as displayed on
Reuters screen "JPNU", row "15:00" (or any successor row
and page thereto) at 3:00 p.m. (Tokyo time) on the tenth
Business Day preceding Maturity.
The following table sets forth, for the hypo-
thetical US$ FX Rates indicated, the amount of
principal that would be payable in respect of
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100,000,000 Japanese Yen Face Amount of the Dual Currency
Notes at Maturity. The information presented below is
furnished solely for purposes of illustration, and no
representation is made that any actual US$ FX Rate will be
equal to, or less than, or greater than, any of the
hypothetical US$ FX Rates indicated.
Amount Payable
Hypothetical US$ FX Rate in Respect of Principal on
JPY 100,000,000 Face Amount
of Dual Currency Notes
121.2000 (or any lesser value) JPY 100,000,000
125.0000 103,135,314
130.0000 107,260,726
135.0000 111,386,139
140.0000 115,511,551
145.0000 119,636,964
150.0000 123,762,376
The table above shows that the amount payable in
respect of principal on the Dual Currency Notes will vary
as the US$ FX Rate varies. In particular, the amount
payable in respect of principal on any Dual Currency Note
will be greater than the Face Amount of such Dual Currency
Note only if the US$ FX Rate in respect of Maturity is
greater than 121.2000 Japanese Yen per 1 U.S. Dollar.
DESCRIPTION OF JAPANESE YEN AND AUSTRALIAN DOLLARS
AND HISTORICAL EXCHANGE RATE INFORMATION
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 March 21, 1997, the noon buying rate
for cable transfers in New York City payable in Japanese
Yen, as reported by the Federal Reserve Bank of New York,
was JPY122.82 = U.S.$1.00.
The Australian Dollar is the national currency of
Australia. Australian bank notes are issued by The Reserve
Bank of Australia, which is the country's central bank and
sole bank of issue. On March 21, 1997, the noon buying rate
for cable transfers in New York City payable in Australian
Dollars, as reported by the Federal Reserve Bank of New
York, was AU$.7841 = US$1.00.
The following table sets forth the exchange rate
between Australian Dollars and Japanese Yen (rounded to two
decimal places) on the last Business Day of the months (and
partial month) indicated, as compiled by the Calculation
Agent based on data reported by Extel Financial Limited.
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JPY/AU$
1992 March 102.48
April 100.75
May 96.66
June 94.10
July 94.75
August 87.95
September 85.55
October 85.61
November 85.04
December 86.04
1993: January 84.79
February 82.08
March 81.10
April 78.63
May 72.47
June 71.04
July 72.21
August 70.20
September 68.47
October 72.20
November 71.84
December 75.75
1994: January 77.31
February 74.23
March 72.03
April 72.41
May 77.26
June 72.07
July 74.02
August 74.58
September 73.24
October 71.95
November 76.04
December 77.39
1995: January 74.92
February 71.30
March 63.37
April 61.15
May 60.92
June 60.18
July 65.08
August 73.74
September 74.46
October 77.77
November 75.49
December 76.73
1996: January 79.62
February 80.42
March 83.54
April 82.36
May 86.31
June 86.33
July 82.48
August 85.93
September 88.12
October 90.20
November 92.68
December 92.19
1997: January 92.53
February 93.67
March (as of March 21) 96.53
The following table sets forth the noon buying rate
for cable transfers in New York City payable in Japanese
Yen, as reported by the Federal Reserve
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Bank of New York, on the last New York Business Day of the
months (and partial month) indicated, as compiled by the
Calculation Agent.
JPY/US$
1992 March 133.06
April 133.30
May 127.75
June 125.87
July 127.35
August 122.95
September 120.00
October 123.30
November 124.42
December 124.85
1993: January 124.97
February 118.10
March 114.90
April 111.27
May 107.17
June 106.80
July 105.50
August 104.73
September 106.05
October 108.35
November 109.08
December 112.00
1994: January 108.72
February 104.22
March 102.40
April 102.05
May 104.74
June 98.51
July 100.05
August 100.11
September 99.05
October 96.90
November 98.91
December 99.60
1995: January 98.43
February 96.60
March 86.85
April 84.04
May 84.65
June 84.78
July 88.34
August 97.75
September 99.10
October 102.26
November 101.80
December 103.28
1996: January 106.95
February 105.12
March 107.00
April 104.63
May 107.65
June 109.48
July 106.77
August 108.70
September 111.65
October 113.97
November 113.88
December 115.77
1997: January 121.25
February 120.83
March (as of March 21122.82
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The information set forth in this Pricing Supplement
relating to the exchange rates between the Japanese Yen and
each of the Australian Dollar and the U.S. Dollar is
furnished as a matter of information only. Significant and
unpredictable fluctuations in such exchange rates have
occurred in the past and it is impossible to predict the
magnitude, direction or frequency of any fluctuations in
such exchange rates that may occur during the term of the
Dual Currency Notes.
The exchange rate between the Japanese Yen and either
the Australian Dollar or the U.S. 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 Australia or
the United States, as the case may be, 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 Australia or the United States,
as the case may be, all of which are in turn sensitive to
the monetary, fiscal and trade policies pursued by the
governments of Japan, Australia or the United States, as
the case may be, and other countries important to
international trade and finance. In recent years, rates of
exchange between the Japanese Yen and the Australian Dollar
and between the Japanese Yen and the U.S. Dollar have been
highly volatile.
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