PRICING SUPPLEMENT NO. 11 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: $45,000,000 CUSIP: 60708 Q AL5
FORM: Book Entry
ORIGINAL ISSUE INITIAL REDEMPTION INTEREST RATE:
DATE:08/31/98 DATE: N/A 5.80%
INTEREST ACCRUAL INITIAL REDEMPTION ORIGINAL MATURITY
DATE: 08/31/98 PERCENTAGE: N/A DATE: 09/02/2003
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 02/28/99
AGENT: J. P. Morgan
AGENT'S DISCOUNT AND
COMMISSIONS: 0.182%
NET PROCEEDS TO ISSUER: 99.818%
The Date of this Pricing Supplement is August 25, 1998
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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 5.80% per annum
is payable semiannually on the last day of each February and August beginning
with February 28, 1999 (with the first payment made on March 1, 1999, as
provided below).
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 anytime, for an amount equal to the accrued interest to the
date of redemption ("Optional Redemption Date") plus 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 Optional Redemption Date on a semiannual basis
(assuming a 360-day year consisting of twelve 30-day months) at the
Treasury Yield plus 15 basis points, minus accrued interest (other than
accrued interest in default) 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
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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%.
