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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 3, 2000
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Merrill Lynch & Co., Inc.
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(Exact name of Registrant as specified in its charter)
Delaware 1-7182 13-2740599
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(State or other (Commission (I.R.S. Employer
jurisdiction of File Number) Identification No.)
incorporation)
World Financial Center, North Tower, New York, New York 10281-1332
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (212) 449-1000
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(Former name or former address, if changed since last report.)
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Item 5. Other Events
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Exhibits are filed herewith in connection with the Registration Statements
on Form S-3 (File Nos. 333-59997 and 333-68747) filed by Merrill Lynch & Co.,
Inc. (the "Company") with the Securities and Exchange Commission covering Senior
Debt Securities issuable under an indenture dated as of April 1, 1983, as
amended through the date hereof, between the Company and The Chase Manhattan
Bank (as so amended, the "Indenture"). The Company will issue $40,000,000
aggregate principal amount of Callable Market Index Target-Term Securities(R)
due March 5, 2007 based upon Internet HOLDR(sm) under the Indenture. The
exhibits consist of the form of Securities and an opinion of counsel relating
thereto.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
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EXHIBITS
(4) Instruments defining the rights of security holders,
including indentures.
Form of Merrill Lynch & Co., Inc.'s Callable Market
Index Target-Term Securities due March 5, 2007 based
upon Internet HOLDRs.
(5) & (23) Opinion re: legality; consent of counsel.
Opinion of Brown & Wood LLP relating to the Callable
Market Index Target-Term Securities due March 5, 2007
based upon Internet HOLDRs (including consent for
inclusion of such opinion in this report and in Merrill
Lynch & Co., Inc.'s Registration Statements relating to
such Securities).
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereto duly authorized.
MERRILL LYNCH & CO., INC.
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(Registrant)
By: /s/ John C. Stomber
----------------------
John C. Stomber
Senior Vice President
and
Treasurer
Date: March 3, 2000
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
MERRILL LYNCH & CO., INC.
EXHIBITS TO CURRENT REPORT ON
FORM 8-K DATED MARCH 3, 2000
Commission File Number 1-7182
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Exhibit Index
Exhibit No. Description Page
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(4) Instruments defining the rights of security holders,
including indentures.
Form of Merrill Lynch & Co., Inc.'s Callable Market Index
Target-Term Securities due March 5, 2007 based upon Internet
HOLDRs.
(5) & (23) Opinion re: legality; consent of counsel.
Opinion of Brown & Wood LLP relating to the Callable Market
Index Target-Term Securities due March 5, 2007 based upon
Internet HOLDRs (including consent for inclusion of such
opinion in this report and in Merrill Lynch & Co., Inc.'s
Registration Statements relating to such Securities).
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Exhibit (4)
THIS CALLABLE MITTS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE
INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITORY
OR A NOMINEE THEREOF. UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR
CALLABLE MITTS SECURITIES IN CERTIFICATED FORM, THIS CALLABLE MITTS SECURITY MAY
NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TRUST COMPANY, A NEW YORK
CORPORATION ("DTC"), TO A NOMINEE OF DTC OR BY DTC OR ANY SUCH NOMINEE TO A
SUCCESSOR DEPOSITORY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITORY. UNLESS THIS
CALLABLE MITTS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC TO
MERRILL LYNCH & CO., INC. OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR
PAYMENT, AND ANY CALLABLE MITTS SECURITY ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR IN SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS
THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
No. R- 4,000,000 Units
CUSIP 590188 298 (Each Unit representing $10 principal
amount of Callable MITTS Securities)
MERRILL LYNCH & CO., INC.
Callable Market Index Target-Term Securities(R)
due March 5, 2007
based upon Internet HOLDR(sm)
("Callable MITTS(R) Securities")
Merrill Lynch & Co., Inc., a Delaware corporation (hereinafter referred to
as the "Company", which term includes any successor corporation under the
Indenture herein referred to), for value received, hereby promises to pay to
CEDE & CO., or its registered assigns, the principal sum of FORTY MILLION
DOLLARS ($40,000,000) (the "Principal Amount") plus the Supplemental Redemption
Amount, as defined below, if any, on March 5, 2007 (the "Stated Maturity").
Payment or delivery of the Principal Amount and the Supplemental Redemption
Amount, if any, and any interest on any overdue amount thereof with respect to
this Security shall be made at the office or agency of the Company maintained
for that purpose in the Borough of Manhattan, The City of New York, in such coin
or currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts.
This Callable MITTS Security is one of the series of Callable Market Index
Target-Term Securities due March 5, 2007 based upon Internet HOLDRs.
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Supplemental Redemption Amount
The "Supplemental Redemption Amount" with respect to this Callable MITTS
Security equals
Principal Amount x (Ending Value - Starting Value)
(-----------------------------)
( Starting Value )
provided, however, that in no event will the Supplemental Redemption Amount be
less than zero. The Starting Value equals 156.44. The Ending Value will be
determined by Merrill Lynch, Pierce, Fenner & Smith Incorporated (the
"Calculation Agent") and will equal the value of the Reference Property (as
defined below) determined as follows: (A) for any portion of the Reference
Property consisting of cash, that cash, plus interest on the amount accruing
from and including the date of the payment of that cash to holders of the
Reference Property for which that cash was paid to but excluding the Stated
Maturity at a fixed interest rate determined on the date of the payment equal to
the interest rate that would be paid on a fixed rate senior non-callable debt
security of the Company with a term equal to the remaining term for the Callable
MITTS Securities as determined by the Calculation Agent; (B) for any portion of
the Reference Property consisting of property other than cash or Reference
Securities (as defined below),the market value of that property, as determined
by the Calculation Agent on the date that the property was delivered to holders
of the relevant Reference Property for which the property was distributed plus
interest on the amount accruing from and including the date of delivery to but
excluding the Stated Maturity at a fixed interest rate determined as described
in (A) above; and (C) for any portion of the Reference Property consisting of
Reference Securities, the average (arithmetic mean) of the Closing Prices (as
defined below) of each such Reference Security determined on each of the first
five Calculation Days (as defined below) during the Calculation Period (as
defined below). If there are fewer than five Calculation Days in the Calculation
Period with respect to any Reference Security, then the Ending Value shall be
calculated using the average (arithmetic mean) of the Closing Prices of that
Reference Security on those Calculation Days, and if there is only one
Calculation Day, then the Ending Value shall be calculated using the Closing
Price of that Reference Security on such Calculation Day. If no Calculation Days
occur during the Calculation Period with respect to that Reference Security,
then the Ending Value shall be calculated using the Closing Price of that
Reference Security determined on the last scheduled Calculation Day in the
Calculation Period, regardless of the occurrence of a Market Disruption Event
(as defined below) on that day.
"Reference Property" initially shall mean one depositary receipt issued by
the Internet HOLDRs Trust ("Internet HOLDRs"), and shall be subject
to adjustment from time to time to reflect the distribution of cash, securities
and/or other property in accordance with the adjustment provisions described
below under "--Dilution and Reorganization Adjustments".
"Reference Securities" shall mean any securities included in the Reference
Property.
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The "Calculation Period" means the period from and including the seventh
scheduled Calculation Day prior to the Stated Maturity to and including the
second scheduled Calculation Day prior to the Stated Maturity.
"Calculation Day" means, with respect to any Reference Security, any
Trading Day (as defined below) during the Calculation Period on which a Market
Disruption Event has not occurred.
"Market Disruption Event" means, for any Reference Security, the occurrence
or existence on any Business Day (as defined below) during the one-half hour
period that ends when the Closing Price is determined, of any suspension of, or
limitation imposed on, trading in that Reference Security on the New York Stock
Exchange (the "NYSE"), or other market or exchange, if applicable.
"Trading Day" means a day on which the American Stock Exchange (the
"AMEX"), the NYSE and the NASDAQ National Market System ("NASDAQ NMS") are open
for trading.
"Closing Price" of a Reference Security means, for a Calculation Day the
following:
(a) If the Reference Security is listed on a national securities exchange in
the United States, is a NASDAQ NMS security or is included in the OTC
Bulletin Board Service ("OTC Bulletin Board") operated by the National
Association of Securities Dealers, Inc. (the "NASD"), Closing Price means
(i) the last reported sale price, regular way, on that day on the principal
United States securities exchange registered under the Securities Exchange
Act of 1934, as amended on which that Reference Security is listed or
admitted to trading, or; (ii) if not listed or admitted to trading on any
such securities exchange or if the last reported sale price is not
obtainable, the last reported sale price on the over-the-counter market as
reported on the NASDAQ NMS or OTC Bulletin Board on that day, or (iii) if
the last reported sale price is not available pursuant to (i) and (ii)
above, the mean of the last reported bid and offer price on the over-the-
counter market as reported on the NASDAQ NMS or OTC Bulletin Board on that
day as determined by the Calculation Agent.
The term "NASDAQ NMS security" shall include a security included in any
successor to that system and the term "OTC Bulletin Board" shall include
any successor service to that service.
(b) If the Reference Security is not listed on a national securities exchange
in the United States or is not a NASDAQ NMS security or included in the OTC
Bulletin Board operated by the NASD, Closing Price means the last reported
sale price on that day on the securities exchange on which the Reference
Security is listed or admitted to trading with the greatest volume of
trading for the calendar month preceding that day as determined by the
Calculation Agent, provided that if the last reported sale price is for a
transaction which occurred more than four hours prior to the close of that
exchange, then the Closing Price shall mean the average,
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mean, of the last available bid and offer price on that exchange. If the
Reference Security is not listed or admitted to trading on any such
securities exchange or if the last reported sale price or bid and offer
are not obtainable, the Closing Price shall mean the last reported sale
price for a transaction which occurred more than four hours prior to
when trading in such over-the-counter market typically ends, then the
Closing Price shall mean the average, mean, of the last available bid
and offer prices in such market of the three dealers which have the
highest volume of transactions in the Reference Security in the
immediately preceding calendar month as determined by the Calculation
Agent based on information that is reasonably available to it.
"Business Day" means each Monday, Tuesday, Wednesday, Thursday and Friday
that is not a day on which banking institutions in The City of New York are
authorized or obligated by law to close and that is a day on the NYSE and the
AMEX are open for trading.
All determinations made by the Calculation Agent shall be at the sole
discretion of the Calculation Agent and, absent a determination by the
Calculation Agent of a manifest error, shall be conclusive for all purposes and
binding on the Company and beneficial owners of the Callable MITTS Securities.
Early Call of the Callable MITTS Securities at the Option of the Company
During the month of February 2006 (the "Call Period"), the Company, in its
sole discretion, may elect to call the Callable MITTS Securities, in whole but
not in part, before the Stated Maturity by giving notice to the Trustee of the
Company's election on any Business Day within the month of February 2006, at
$22.50 per unit (the "Call Price") and specifying the date on which the Call
Price shall be paid (the "Payment Date").
The Payment Date shall be no later than the twentieth Business Day after
the call election. The Trustee will provide notice of the call election to the
registered holders of the Callable MITTS Securities, specifying the Payment
Date, no less than 15, nor more than 30, calendar days prior to the Payment
Date.
Dilution and Reorganization Adjustments
The Reference Property is subject to adjustment if an issuer of any
Reference Security shall: (i)pay a stock dividend or make a distribution on that
Reference Security in Reference Securities; (ii)subdivide or split the
outstanding units of that Reference Security into a greater number of units;
(iii)combine the outstanding units of that Reference Security into a smaller
number of units; (iv)issue by reclassification of units of that Reference
Security any units of another security of that issuer; (v)issue rights or
warrants to all holders of that Reference Security entitling them to subscribe
for or purchase shares, in the aggregate, for more than 5% of the number of
those Reference Securities outstanding prior to the issuance of the rights or
warrants at a price per share
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less than the then current market price of that Reference Security (other than
rights to purchase that Reference Security pursuant to a plan for the
reinvestment of dividends or interest); or (vi)pay a dividend or make a
distribution to all holders of that Reference Security of evidences of its
indebtedness or other assets including in the case where the Reference Security
is Internet HOLDRs, any of the securities underlying Internet HOLDRs that may be
distributed by the Internet HOLDRs Trust, but excluding any stock dividends or
distributions referred to in clause (i) above or any cash dividends other than
any Extraordinary Cash Dividend or issue to all holders of that Reference
Security rights or warrants to subscribe for or purchase any of its securities
(other than those referred to in clause (v) above) (any of the foregoing assets
are referred to as the "Distributed Assets" and any of the foregoing events are
referred to as the "Dilution Events"). For purposes of provision (vi), if the
holder of a Reference Security can elect to receive securities in lieu of cash
or property other than securities, then for purposes of provision (vi) the
holders of the Reference Security shall be deemed to receive only the
securities.
In the case of the Dilution Events referred to in clauses (i), (ii), (iii)
and (iv) above, the Reference Property shall be adjusted to include the number
of units of the Reference Security and/or security of that issuer which a holder
of units of that Reference Security would have owned or been entitled to receive
immediately following any the event had the holder held, immediately prior to
such event, the number of units of that Reference Security constituting part of
the Reference Property immediately prior to the event. Each adjustment shall
become effective immediately after the effective date for the subdivision,
split, combination or reclassification, as the case may be. Each adjustment
shall be made successively.
In the case of the Dilution Event referred to in clause (v) above where the
rights or warrants are for more than 5% of the number of shares outstanding
prior to the issuance of the rights or warrants, the Reference Property shall be
adjusted by multiplying the number of Reference Securities constituting
Reference Property immediately prior to the date of issuance of the rights or
warrants referred to in clause (v) above by a fraction, (1) the numerator of
which shall be the number of Reference Securities outstanding on the date
immediately prior to such issuance, plus the number of additional Reference
Securities offered for subscription or purchase pursuant to the rights or
warrants, and (2) the denominator of which shall be the number of Reference
Securities outstanding on the date immediately prior to such issuance, plus the
number of additional Reference Securities which the aggregate offering price of
the total number of Reference Securities so offered for subscription or purchase
pursuant to the rights or warrants would purchase at the current market price,
determined as the average Closing Price per Reference Security for the 20
Trading Days immediately prior to the date of such rights or warrants are
issued, subject to certain adjustments, which shall be determined by multiplying
such total number of Reference Securities by the exercise price of the rights or
warrants and dividing the product so obtained by the current market price. To
the extent that Reference Securities are not delivered after the expiration of
the rights or warrants, or if the rights or warrants are not issued, the
Reference Property shall be readjusted to the Reference Property which would
then be in effect had such adjustments for the issuance of the rights or
warrants been made upon the basis of delivery of only the number of Reference
Securities actually delivered.
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In the case of the Dilution Event referred to in clause (vi) above, the
Reference Property shall be adjusted to include, from and after the dividend,
distribution or issuance, for the portion of the Distributed Assets consisting
of cash, the amount of such Distributed Assets consisting of cash received for
each unit of that Reference Security multiplied by the number of units of that
Reference Security constituting part of the Reference Property on the date of
the dividend, distribution or issuance, immediately prior to the dividend,
distribution or issuance, plus for the portion of the Distributed Assets which
are other than cash, the number or amount of each type of Distributed Assets
other than cash received with respect to each unit of that Reference Security
multiplied by the number of units of that Reference Security constituting part
of the Reference Property on the date of the dividend, distribution or issuance,
immediately prior to the dividend, distribution or issuance.
An "Extraordinary Cash Dividend" means, with respect to any consecutive 12-
month period, the amount, if any, by which the aggregate amount of all cash
dividends or any other distribution made by the issuer of a Reference Security
or made pursuant to an arrangement effecting a distribution of distributable
profits or reserves, whether in cash or in specie, on any Reference Security
occurring in such 12-month period (or, if the Reference Security was not
outstanding at the commencement of such 12-month period or was not then a part
of the Reference Property, occurring in such shorter period during which such
Reference Security was outstanding and was part of the Reference Property)
exceeds on a per share basis 10% of the average of the Closing Prices per share
of such Reference Security over such 12-month period (or shorter period during
which such Reference Security was outstanding and was part of the Reference
Property); provided that, for purposes of the foregoing definition, the amount
of cash dividends paid on a per share basis will be appropriately adjusted to
reflect the occurrence during such period of any stock dividend or distribution
of shares of capital stock of the issuer of such Reference Security or any
subdivision, split, combination or reclassification of shares of such Reference
Security.
If the Reference Security is Internet HOLDRs, the determination as to
whether any cash dividend on such Internet HOLDRs is an Extraordinary Cash
Dividend shall be made by examining which of the stocks underlying Internet
HOLDRs is responsible for all or a portion of such cash dividend on Internet
HOLDRs, and treating each such stock underlying Internet HOLDRs as if it were a
Reference Security only for this purpose and then determining whether such cash
dividend would be an Extraordinary Cash Dividend as defined above with respect
to such deemed Reference Security.
A "Reorganization Event" shall mean, (i) any consolidation or merger of an
issuer of a Reference Security, or any surviving entity or subsequent surviving
entity of that issuer (a "Successor Company"), with or into another entity,
other than a merger or consolidation in which such issuer is the continuing
corporation and in which the Reference Security outstanding immediately prior to
the merger or consolidation is not exchanged for cash, securities or other
property of such issuer or another corporation, (ii) any sale, transfer, lease
or conveyance to another corporation of the property of an issuer of a Reference
Security or any Successor Company as an entirety or substantially as an
entirety, (iii) any statutory exchange of securities of an issuer of a Reference
Security or any Successor Company with another corporation, other than in
connection with a merger
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or acquisition, or (iv) any liquidation, dissolution, winding up or bankruptcy
of an issuer of a Reference Security or any Successor Company.
If a Reorganization Event occurs, the Reference Property shall include: (i)
for any cash received in that Reorganization Event, the cash received for each
unit of a Reference Security multiplied by the number of units of that Reference
Security constituting part of the Reference Property on the date of the
Reorganization Event, (ii) for any property other than cash or securities
received in that Reorganization Event, the property received for each unit of a
Reference Security multiplied by the number of units of that Reference Security
constituting part of the Reference Property on the date of the Reorganization
Event as determined by the Calculation Agent, and (iii) for any securities
received in that Reorganization Event, the securities received for each unit of
a Reference Security multiplied by the number of units of that Reference
Security constituting part of the Reference Property on the date of the
Reorganization Event (subject to adjustment on a basis consistent with the
adjustment provisions described above).
All adjustments will be calculated to the nearest 1/10,000th of a share of
the Reference Security, or if there is not a nearest 1/10,000th of a share to
the next lower 1/10,000th of a share. No adjustment shall be required unless
that adjustment would require an increase or decrease of at least one percent in
the Closing Price; provided, however, that any adjustments which by reason of
the foregoing are not required to be made shall be carried forward and taken
into account in any subsequent adjustment.
The foregoing adjustments shall be made by MLPF&S, as Calculation Agent,
and all adjustments shall be final.
The Company shall, within ten Business Days following the occurrence of an
event that requires an adjustment, or if the Company is not aware of such
occurrence, as soon as practicable after becoming so aware, provide written
notice to the trustee, which shall provide notice to the holders of the Callable
MITTS Securities of the occurrence of the event and, if applicable, a statement
in reasonable detail setting forth the adjusted Closing Price to be used in
determining the Ending Value.
General
This Callable MITTS Security is one of a duly authorized issue of
securities of the Company, issued and to be issued under an Indenture, dated as
of April 1, 1983, as amended (herein referred to as the "Indenture"), between
the Company and The Chase Manhattan Bank , as Trustee (herein referred to as the
"Trustee", which term includes any successor Trustee under the Indenture), to
which Indenture and all indentures supplemental thereto reference is hereby made
for a statement of the respective rights thereunder of the Company, the Trustee
and the Holders of the Callable MITTS Securities, and the terms upon which the
Callable MITTS Securities are, and are to be, authenticated and delivered.
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The Company hereby covenants for the benefit of the Holders of the Callable
MITTS Securities, to the extent permitted by applicable law, not to claim
voluntarily the benefits of any laws concerning usurious rates of interest
against a Holder of the Callable MITTS Securities.
The Callable MITTS Securities are not subject to redemption by the Company
or at the option of the Holder prior to the Stated Maturity.
In case an Event of Default with respect to any Callable MITTS Securities
shall have occurred and be continuing, the amount payable to a Holder of a
Callable MITTS Security upon any acceleration permitted by the Callable MITTS
Securities, with respect to each $10 principal amount thereof, will be equal to
the $10 principal amount and the Supplemental Redemption Amount, if any,
calculated assuming the date of early repayment is the Stated Maturity of
the Callable MITTS Securities. If the acceleration occurs before the end of the
Call Period, the maximum amount payable with respect to the Callable MITTS
Securities will be the Call Price.
In case of default in payment of the Callable MITTS Securities (whether at
the Stated Maturity or upon acceleration), from and after the maturity date the
Callable MITTS Securities shall bear interest, payable upon demand of the
Holders thereof, at the rate of 6.68% per annum (to the extent that payment of
such interest shall be legally enforceable) on the unpaid amount due and payable
on such date in accordance with the terms of the Callable MITTS Securities to
the date payment of such amount has been made or duly provided for.
The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Callable MITTS Securities of each
series to be affected under the Indenture at any time by the Company and the
Trustee with the consent of the Holders of not less than 66 2/3% in aggregate
principal amount of the Callable MITTS Securities at the time Outstanding, as
defined in the Indenture, of each series affected thereby. The Indenture also
contains provisions permitting the Holders of specified percentages in aggregate
principal amount of the Callable MITTS Securities of each series at the time
Outstanding, on behalf of the Holders of all Callable MITTS Securities of each
series, to waive compliance by the Company with certain provisions of the
Indenture and certain past defaults under the Indenture and their consequences.
Any such consent or waiver by the Holder of this Callable MITTS Security shall
be conclusive and binding upon such Holder and upon all future Holders of this
Callable MITTS Security and of any Callable MITTS Security issued upon the
registration of transfer hereof or in exchange herefor or in lieu hereof whether
or not notation of such consent or waiver is made upon this Callable MITTS
Security.
No reference herein to the Indenture and no provision of this Callable
MITTS Security or of the Indenture shall alter or impair the obligation of the
Company, which is absolute and unconditional, to pay the Principal Amount plus
the Supplemental Redemption Amount, if any, with respect to this Callable MITTS
Security and any interest on any overdue amount thereof at the time, place, and
rate, and in the coin or currency herein prescribed.
As provided in the Indenture and subject to certain limitations set forth
therein and on the first page hereof, the transfer of this Callable MITTS
Security may be registered on the Security Register of the Company, upon
surrender of this Callable MITTS Security for registration of
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transfer at the office or agency of the Company in the Borough of Manhattan, The
City of New York, duly endorsed by, or accompanied by a written instrument of
transfer in form satisfactory to the Company duly executed by, the Holder hereof
or by his attorney duly authorized in writing, and thereupon one or more new
Callable MITTS Securities, of authorized denominations and for the same
aggregate principal amount, will be issued to the designated transferee or
transferees.
The Callable MITTS Securities are issuable only in registered form without
coupons in denominations of $10 and integral multiples thereof. This Callable
MITTS Security shall remain in the form of a global security held by a
Depository. Notwithstanding the foregoing, if (x) any Depository is at any time
unwilling or unable to continue as Depository and a successor depository is not
appointed by the Company within 60 days, (y) the Company executes and delivers
to the Trustee a Company Order to the effect that this Callable MITTS Security
shall be exchangeable or (z) an Event of Default has occurred and is continuing
with respect to the Callable MITTS Securities, this Callable MITTS Security
shall be exchangeable for Callable MITTS Securities in definitive form of like
tenor and of an equal aggregate Principal Amount, in denominations of $10 and
integral multiples thereof. Such definitive Callable MITTS Securities shall be
registered in such name or names as the Depository shall instruct the Trustee.
If definitive Callable MITTS Securities are so delivered, the Company may make
such changes to the form of this Callable MITTS Security as are necessary or
appropriate to allow for the issuance of such definitive Callable MITTS
Securities.
No service charge shall be made for any such registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any
tax or governmental charge payable in connection therewith.
Prior to due presentment of this Callable MITTS Security for registration
of transfer, the Company, the Trustee and any agent of the Company or the
Trustee may treat the Person in whose name this Callable MITTS Security is
registered as the owner hereof for all purposes, whether or not this Callable
MITTS Security be overdue, and neither the Company, the Trustee nor any such
agent shall be affected by notice to the contrary.
All terms used in this Callable MITTS Security which are defined in the
Indenture but not in this Callable MITTS Security shall have the meanings
assigned to them in the Indenture.
Unless the certificate of authentication hereon has been executed by The
Chase Manhattan Bank, the Trustee under the Indenture, or its successor
thereunder, by the manual signature of one of its authorized officers, this
Callable MITTS Security shall not be entitled to any benefits under the
Indenture or be valid or obligatory for any purpose.
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IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed under its corporate seal.
Dated: March 3, 2000
CERTIFICATE OF AUTHENTICATION Merrill Lynch & Co., Inc.
This is one of the Securities of the series
designated therein referred to in the
within-mentioned Indenture.
The Chase Manhattan Bank, as Trustee [Copy of Seal] By:
Treasurer
By: Attest:
Authorized Officer Secretary
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EXHIBIT (5) & (23)
March 3, 2000
Merrill Lynch & Co., Inc.
World Financial Center
North Tower
New York, New York 10281
Gentlemen:
As your counsel, we have examined a copy of the Restated Certificate of
Incorporation, as amended, of Merrill Lynch & Co., Inc. (hereinafter called the
"Company"), certified by the Secretary of State of the State of Delaware. We
are familiar with the corporate proceedings had in connection with the proposed
issuance and sale by the Company to the Underwriter named in the Terms Agreement
referred to below, pursuant to an Underwriting Agreement dated August 5, 1998
(the "Underwriting Agreement"), between the Company and Merrill Lynch & Co.,
Merrill Lynch, Pierce, Fenner & Smith Incorporated ("MLPF&S"), as supplemented
by the Terms Agreement dated February 29, 2000 (the "Terms Agreement") between
the Company and MLPF&S (the "Underwriter"), of $40,000,000 aggregate principal
amount of the Company's Callable Market Index Target-Term Securities(R) due
March 5, 2007 based upon Internet HOLDR(sm) (the "Securities"). We have also
examined a copy of the Indenture between the Company and The Chase Manhattan
Bank as Trustee, dated as of April 1, 1983, as amended (the "Indenture"), and
the Company's Registration Statements on Form S-3 (File Nos. 333-59997 and 333-
68747) relating to the Securities (the "Registration Statements").
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Based upon the foregoing and upon such further investigation as we deemed
relevant in the premises, we are of the opinion that:
1. The Company has been duly incorporated under the laws of the State of
Delaware.
2. The Securities have been duly and validly authorized by the Company and
when the Securities have been duly executed and authenticated in accordance with
the terms of the Indenture and delivered against payment therefor as set forth
in the Underwriting Agreement, as supplemented by the Terms Agreement, the
Securities will constitute valid and legally binding obligations of the Company,
enforceable against the Company in accordance with their terms, except to the
extent that enforcement thereof may be limited by bankruptcy, moratorium,
insolvency, reorganization or similar laws relating to or affecting creditors'
rights generally and except as enforcement thereof is subject to general
principles at equity (regardless of whether enforcement is considered in a
proceeding in equity or at law).
We consent to the filing of this opinion as an exhibit to the Registration
Statements and as an exhibit to the Current Report of the Company on Form 8-K
dated March 3, 2000.
Very truly yours,
