PRICING SUPPLEMENT NO. 4 Filed under Rule 424(b)(3)
To Prospectus Dated April 20, 1990 and File Number 33-34133-01
Prospectus Supplement Dated February 17, 1994
MOBIL OIL CORPORATION
EMPLOYEE STOCK OWNERSHIP PLAN TRUST
MEDIUM-TERM NOTES
GUARANTEED BY MOBIL CORPORATION
Due More Than Nine Months From the Date of Issue
FACE AMOUNT: $15,000,000 CUSIP: 60708 Q AD3
FORM: Book Entry
ORIGINAL ISSUE INITIAL REDEMPTION INTEREST RATE:
DATE: 09/03/96 DATE: N/A 6.625%
INTEREST ACCRUAL INITIAL REDEMPTION ORIGINAL MATURITY
DATE: 09/03/96 PERCENTAGE: N/A DATE: 02/28/2001
APPLICABILITY OF OPTIONAL REPAYMENT TOTAL AMOUNT
MODIFIED PAYMENT DATES: N/A OF OID: N/A
UPON ACCELERATION: N/A
APPLICABILITY ANNUAL REDEMPTION ORIGINAL
OF ANNUAL INTEREST PERCENTAGE: N/A YIELD TO
PAYMENTS: N/A MATURITY: N/A
INTEREST SPECIFIED INITIAL
PAYMENT CURRENCY: ACCRUAL
DATES: U.S. dollars PERIOD OID: N/A
The last day of
February and August
each year beginning
with 02/28/97
AGENT: MORGAN STANLEY & CO.
AGENT'S DISCOUNT OR
COMMISSIONS: 0.647%
NET PROCEEDS TO ISSUER: 99.353%
The Date of this Pricing Supplement is August 26,
1996
DESCRIPTION OF THE OFFERED NOTES
General
The following description of the terms of the Notes offered by
this Pricing Supplement (the "Offered Notes") supplements, and to the
extent inconsistent therewith replaces, the description of the general
terms and provisions of the Medium-Term Notes set forth in the
accompanying Prospectus Supplement and of the Debt Securities set
forth in the accompanying Prospectus, to which descriptions reference
is hereby made. Capitalized terms not otherwise defined herein which
are defined in the Prospectus Supplement have the meanings set forth
therein.
Interest
The Offered Notes are Fixed Rate Notes. Interest at 6.625% per
annum is payable semiannually on the last day of each February and
August beginning with February 28, 1997.
Payment of Principal and Interest
If any Interest Payment Date, the Original Maturity Date or any
date fixed for redemption at the option of the Issuer falls on a day
that is not a Business Day, any principal or interest that would
otherwise be payable on such date shall be paid on the next succeeding
Business Day, and no interest shall accrue for the intervening period.
For these purposes, "Business Day" shall mean any day, other than a
Saturday or a Sunday, that is neither a legal holiday nor a day on
which banking institutions are authorized or required by law or
regulation to close in the City of New York or Chicago.
Redemption at the Option of the Issuer
The Offered Notes are redeemable in whole or in part, at the option
of the Issuer at any time, at a redemption price equal to the greater of (i)
100% of the principal amount being redeemed or (ii) the sum of the present
values of the remaining scheduled payments of principal and interest thereon
discounted to the date of redemption (the Optional Redemption Date ) on a
semiannual basis (assuming a 360-day year consisting of twelve 30-day months)
at the Treasury Yield plus 10 basis points, plus in each case accrued
interest to the Optional Redemption Date.
Treasury Yield means, with respect to any Optional Redemption Date,
the rate per annum equal to the semiannual equivalent yield to maturity of the
Comparable Treasury Issue, assuming a price for the Comparable Treasury
Issue (expressed as a percentage of its principal amount) equal to the
Comparable Treasury Price for such redemption date.
Comparable Treasury Issue means the United States Treasury
security selected and designated to the Issuer in writing by an Independent
Investment Banker as having a maturity comparable to the remaining term of
the Notes that would be utilized, at the time of selection and in accordance
with customary financial practice, in pricing new issues of corporate debt
securities of comparable maturity to the remaining term of this Note.
"Independent Investment Banker" means one of the Reference Treasury Dealers
(or, if no such firm is willing and able to select the Comparable Treasury
Issue, an independent investment banking institution of national standing)
appointed by the Indenture Trustee after consultation with the Issuer.
Comparable Treasury Price means, with respect to any Optional
Redemption Date: (i) the average of the bid and asked prices for the
Comparable Treasury Issue (expressed in each case as a percentage of its
principal amount) on the third business day preceding such Optional
Redemption Date, as set forth in the daily statistical release (or any successor
release) published by the Federal Reserve Bank of New York and designated
Composite 3:30 p.m. Quotations for U.S. Government Securities or (ii) if such
release (or any successor release) is not published or does not contain such
prices on such business day, (A) the average of the Reference Treasury Dealer
Quotations for such Optional Redemption Date, after excluding the highest and
lowest such Reference Treasury Dealer Quotations, or (B) if the Indenture
Trustee obtains fewer than four Reference Treasury Dealer Quotations, the
average of all such Quotations. Reference Treasury Dealer Quotations means,
with respect to each Reference Treasury Dealer and any Optional Redemption
Date, the average, as determined by the Indenture Trustee, of the bid and asked
prices for the Comparable Treasury Issue (expressed in each case as a
percentage of its principal amount) quoted in writing to the Indenture Trustee
by such Reference Treasury Dealer at 5:00 p.m. on the third business day
preceding such Optional Redemption Date.
Reference Treasury Dealer means each of Morgan Stanley & Co.
Incorporated, Goldman, Sachs & Company, J.P. Morgan Securities, Incorporated
and another Primary Treasury Dealer (as defined herein) at the option of the
Issuer, provided, however, that if any of the foregoing shall cease to be a
primary U.S. Government securities dealer in New York City (a Primary
Treasury Dealer ), the Issuer shall substitute therefor another Primary
Treasury Dealer.
Holders of Notes to be redeemed will receive notice thereof by first-
class mail at least 30 and not more than 60 days prior to the date fixed for
redemption.
If less than all the Notes are to be redeemed, the Trustee will select
Notes for redemption pro rata or by lot or by such other method as the
Indenture Trustee shall deem fair and appropriate. If any Note is to be
redeemed in part only, a new Note or Notes in principal amount equal to the
unredeemed principal portion thereof will be issued.
Cost of Commissions
Pursuant to agreements between the Issuer, Mobil Oil Corporation and
Mobil Corporation, the cost of commissions ultimately is to be borne by Mobil
Corporation, and the Issuer effectively will receive net proceeds of 100%.
