Pricing Supplement No Euro D214 Dated 11/21/97 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 5 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: USD 10,000,000
Issue Price: 100.00%
Proceeds to Company on original issuance: USD 9,995,000
Commission or Discount on original issuance: USD 5,000
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: 11/24/97
Stated Maturity: 11/24/98
Specified Currency: USD
(If other than U.S. Dollars)
Authorized Denominations: 10,000
(If other than as set forth in the Prospectus Supplement)
Interest Payment Dates: 24th of every Feb., May, Aug., & Nov. First
coupon commencing 2/24/98.
Accrue to Pay: | | Yes |X| No
Indexed Principal Note: | | Yes (See Attached) |X| 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): | | 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.
Minimimum Interest Rate: N.A.
Amortizing Note: | | Yes (See Attached) |X| No
Optional Redemption: |X| Yes | | No
Optional Redemption Dates: 24th of every Feb., May, & Aug. 1998.
Redemption Prices:
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: |X| Yes | | No
Common Code: 8234272
ISIN: XS0082342725
Cusip: 99312F9A1
Pricing Supplement No. Euro D214
Supplement dated November 21, 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 "FX 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.
"Business Day" with respect to the FX 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) Madrid, Spain.
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 FX
Notes. The Calculation Agent shall not be an agent of the Holders
of the FX Notes, and its calculations and determinations in
respect of the FX Notes shall (except in the case of manifest
error) be final and binding on the Company and such Holders.
On September 24, 1997, Salomon Inc and Travelers Group
Inc. ("Travelers Group") announced that they had entered into an
Agreement and Plan of Merger dated as of September 24, 1997,
pursuant to which a newly-formed, wholly owned subsidiary of
Travelers Group will merge with and into Salomon Inc, which will
become a wholly owned subsidiary of Travelers Group and be
renamed Salomon Smith Barney Holdings Inc. Immediately
thereafter, it is anticipated that Smith Barney Holdings Inc.,
another wholly owned subsidiary of Travelers Group, will be
merged with and into the Company. It is currently anticipate that
each of these transactions will be consummated on or about
November 28, 1997.
Risk Factors
The FX Notes are Indexed Notes (as described in the
accompanying Prospectus Supplement).
<PAGE>
The amount of interest that a Holder will receive in
respect of the FX 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 U.S. Dollar and the Spanish Peseta on the second
Business Day prior to such Interest Payment Date, as described
below under "Interest". As described more fully below under
"Indexed Interest", if the applicable exchange rate for any such
Interest Period is greater than 146.75 Spanish Pesetas per 1 U.S.
Dollar, the amount of interest payable in respect of the FX Notes
for such Interest Period shall be less than the nominal interest
rate of 5.10% per annum. Holders of the FX Notes should be
prepared to earn less than the nominal interest rate of 5.10% on
their principal.
The FX Notes are subject to redemption at the option
of the Company on any of the Interest Payment Dates occurring on
February 24, May 24, or August 24, 1998. The amount that a Holder
will receive in respect of principal on the FX Notes at Maturity
or upon Optional Redemption by the Company will be determined by
reference to the exchange rate between the U.S. Dollar and the
Spanish Peseta on the second Business Day prior to Maturity or
the Optional Redemption Date, as the case may be, as described
below under "Indexed Principal" and "Redemption". As described
more fully below under "Indexed Principal", if the applicable
exchange rate at Maturity or any Optional Redemption Date is
greater than 146.75 Spanish Pesetas per one U.S. Dollar, the
amount payable in respect of principal on any FX Note shall be
less than the Face Amount of such FX Note (as stated on the cover
of this Pricing Supplement). Holders of the FX Notes should be
prepared to receive less than the face amount of their Notes at
Maturity or upon Optional Redemption by the Company.
Redemption
The Company may exercise its right of Optional
Redemption with respect to the FX Notes, in whole, but not in
part, on any of the Interest Payment Dates occurring on February
24, May 24, or August 24, 1998 (each such date an "Optional
Redemption Date"), by notifying the Trustee of its exercise of
such option at least 3 Business Days prior to the Optional
Redemption Date. Immediately upon receipt of such notice, the
Trustee shall (i) mail notice of such redemption, first class,
postage prepaid or (ii) telefax notice of such redemption, to the
Depositary's nominee, as sole Holder of the FX Notes under the
Indenture. The Depositary will distribute any such notice to the
owners of beneficial interests in the FX Notes in accordance with
its regular practice.
Indexed Interest
The amount of interest payable in respect of each FX
Note on each of the Interest Payment Dates (including the date of
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 of the FX Note, (ii) a nominal interest rate of
5.10% per annum
<PAGE>
(calculated on the basis of a 360-day year of twelve 30-day
months) and (iii) a fraction having (x) a numerator equal to
146.75 and (y) a denominator equal to the "FX Rate" (as defined
below) with respect to such Interest Payment Date.
Indexed Principal
The amount of principal payable in respect of each FX
Note at Maturity (or, in the event of Optional Redemption by the
Company, on the relevant Optional Redemption Date) will be an
amount equal to the product of (i) the Face Amount of the FX Note
and (ii) a fraction having (x) a numerator equal to 146.75 and
(y) a denominator equal to the FX Rate (as defined below) with
respect to the date of Maturity (or the Optional Redemption Date,
as the case may be).
FX Rate
The FX Rate, with respect to any Interest Payment
Date, Optional Redemption Date or Maturity, means the number of
Spanish Pesetas (calculated to two decimal places) required to
purchase one U.S. dollar, as determined by the Calculation Agent
by calculating the arithmetic mean (rounded to two decimal
places) of the bid and offer spot exchange rate between the
Spanish Peseta and the U.S. Dollar, as displayed on Reuters
screen "FXFY", row "11:00" (or any successor row and page
thereto) at 11:00 a.m. (London time) on the second Business Day
preceding the relevant date for which the rate is to be
determined.
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 Notes for the related
Interest Period and (ii) the amount of principal that would be
payable at Maturity or Optional Redemption for $1,000 Face Amount
of the FX Notes. 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.
Interest Rate for
relevant Interest Period Principal Payable per $1,000
Hypothetical (per annum, calculated on Face Amount at Maturity or
FX Rate 30/360 basis) Optional Redemption
--------------------------------------------------------------------------
120.00 6.24% $1,222.92
125.00 5.99% $1,174.00
130.00 5.76% $1,128.85
135.00 5.54% $1,087.04
140.00 5.35% $1,048.21
146.75 5.10% $1,000.00
150.00 4.99% $978.33
155.00 4.83% $946.77
160.00 4.68% $917.19
165.00 4.54% $889.39
170.00 4.40% $863.24
175.00 4.28% $83.857
<PAGE>
The table above shows that both the interest and the
principal return on the FX Notes will vary as the FX Rate varies.
In particular, the return on the FX Notes will decline as the
Spanish Peseta depreciates in value against the U.S. dollar and
will increase as the Spanish Peseta appreciates in value against
the U.S. dollar.
If the Spanish Peseta should depreciate in value
against the U.S. dollar such that the FX Rate is greater than
146.75 with respect to any Optional Redemption Date or Maturity,
the amount of principal payable to the Holder of the FX Notes
upon any such Optional Redemption Date or Maturity would be less
than the Face Amount of the FX Notes. 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 146.75, the rate of interest payable with respect to
the Interest Period ending on the day preceding such Interest
Payment Date, would be less than the nominal interest rate of
5.10% per annum.
DESCRIPTION OF SPANISH PESETAS
The Peseta is the national currency of Spain. Spanish
bank notes are issued by The Bank of Spain, which is the
country's central bank and sole bank of issue. On November 20,
1997, the noon buying rate for cable transfers in New York City
payable in Pesetas, as reported by the Federal Reserve Bank of
New York, was ESP 146.50 = $1.00.
The exchange rate between the Peseta and 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 Spain 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
Spain and in the United States, all of which are in turn
sensitive to the monetary, fiscal and trade policies pursued by
the governments of Spain, 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 Spanish
Peseta have been highly volatile.
