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Defined
Asset FundsSM
Corporate
Income Fund
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INSURED SERIES -- 25
A UNIT INVESTMENT TRUST
/ /INSURED
/ /MONTHLY INCOME
/ /AAA-RATED
7.71%
ESTIMATED CURRENT RETURN
7.75%
ESTIMATED LONG TERM RETURN
AS OF FEBRUARY 23, 1995
TAX-EXEMPT TO FOREIGN
INVESTORS WHEN CERTAIN
CONDITIONS ARE MET
Merrill Lynch,
Pierce, Fenner &
Smith Incorporated
Defined Asset Funds
P.O. Box 9051
Princeton, N.J.
08543-9051
(609) 282-8500
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INVESTMENT SUMMARY AS OF FEBRUARY 23, 1995
<TABLE>
<S> <C>
ESTIMATED CURRENT RETURN( a )
(based on Public Offering Price) 7.71%
ESTIMATED LONG TERM RETURN( a )
(based on Public Offering Price) 7.75%
PUBLIC OFFERING PRICE PER UNIT
(including 4.50% sales charge) $ 965.07( b )
FACE AMOUNT OF SECURITIES-- $ 8,000,000
INITIAL NUMBER OF UNITS( c )-- 8,000
SPONSORS' REPURCHASE PRICE AND
REDEMPTION PRICE PER UNIT( d )
(based on bid side evaluation) $ 916.64( b )
FRACTIONAL UNDIVIDED INTEREST IN
FUND REPRESENTED BY EACH UNIT-- 1/8,000TH
CALCULATION OF PUBLIC OFFERING
PRICE
Aggregate offer side evaluation
of Securities in Fund....... $ 7,373,125.00
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Divided by 8,000 Units......... $ 921.64
Plus sales charge of 4.50% of
Public Offering Price
(4.712% of net amount
invested in
Securities)( e ).................. 43.43
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Public Offering Price per
Unit.............................. $ 965.07
Plus accrued interest( f )..... 1.85
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Total....................... $ 966.92
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<S> <C>
MONTHLY INCOME DISTRIBUTIONS
First distribution to be paid on the
25th day of May, 1995 to Holders
of record on the 10th day of May,
1995.................................... $ 3.27
Calculation of second and following
distributions, to be paid on the
25th day of each month:
Estimated net annual interest rate
per Unit times $1,000.......... $ 74.39
Divided by 12.................. $ 6.19
REDEMPTION PRICE PER UNIT LESS THAN:
Public Offering Price by.......... $ 48.43
Sponsors' Initial Repurchase Price
by...................................... $ 5.00
</TABLE>
PORTFOLIO AT A GLANCE--
DIVERSIFICATION--The Portfolio contains obligations of 11 issuers
representing 11 public utility companies (including 2 telecommunication
companies). Because of possible maturity, sale or other disposition of
Securities, the size, composition and return of the Portfolio may change at any
time.
INVESTMENT QUALITY--Units of the Fund are rated AAA by Standard & Poor's.
LONG-TERM MATURITIES--The issues have maturity dates ranging from 2022 to
2033.
CALL PROTECTION--Issuers are usually able to redeem bonds under optional
refunding and sinking fund provisions. Optional refunding redemptions, which may
redeem all or part of an issue, are in most cases initially at a premium, and
then in subsequent years at declining prices, but typically not below par value.
Approximately 6% of the aggregate face amount of the Debt Obligations are
currently subject to optional refunding redemptions at prices initially not less
than 106.14% of par; approximately 94% of the Debt Obligations are subject to
optional refunding redemptions but not before 1997, at prices initially not less
than 102.74% of par. Bonds are also generally subject to mandatory sinking fund
redemptions at par over the life of the issue and may also provide for
redemption at par prior or in addition to any optional or mandatory redemption
dates or maturity, for example, through operation of a maintenance and
replacement fund, if proceeds are not able to be used as contemplated, the
project is condemned or sold or the project is destroyed and insurance proceeds
are used to redeem the bonds.
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(a) Estimated Current Return represents annual interest income after estimated
annual expenses divided by the maximum public offering price including a 4.50%
maximum sales charge. Estimated Long Term return is the net annual percentage
return based on the yield on each underlying Debt Obligation weighted to reflect
market value and time to maturity or earlier call date. Estimated Long Term
return is adjusted for estimated expenses and the maximum offering price but not
for delays in the Fund's distribution of income. Estimated Current Return shows
current annual cash return to investors while Estimated Long Term Return shows
the return on Units held to maturity, reflecting maturities, discounts and
premiums on underlying Debt Obligations. Each figure will vary with purchase
price including sales charge, changes in Fund income and the redemption, sale or
other disposition of Debt Obligations in the Portfolio.
(b) Plus accrued interest.
(c) The Sponsors may create additional Units during the offering period of the
Fund.
(d) During the initial offering period, the Fund's Sponsors intend to offer to
purchase Units at prices based on the offer side value of the underlying
Securities. Thereafter, the Sponsors intend to maintain such a market based on
the bid side value of the underlying Securities which will be equal to the
Redemption Price.
(e) The sales charge during the initial offering period and in the secondary
market will be reduced on a graduated scale in the case of quantity purchases.
The resulting reduction in the Public Offering Price will increase the effective
current and long term returns on a Unit.
(f) Figure shown represents interest accrued on underlying Securities from the
Initial Date of Deposit to expected date of settlement (normally five business
days after purchase) for Units purchased on the Initial Date of Deposit.
VOLUME PURCHASE DISCOUNT
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<TABLE>
<CAPTION>
INITIAL OFFERING PERIOD SECONDARY MARKET SALES
<S> <C> <C> <C>
SALES CHARGE AS SALES CHARGE AS
A PERCENTAGE OF THE OFFER SIDE A PERCENTAGE OF THE BID SIDE
NUMBER OF UNITS PUBLIC OFFERING PRICE NUMBER OF UNITS PUBLIC OFFERING PRICE
<CAPTION>
- ------------------- ------------------------------ ------------------- ------------------------------
<S> <C> <C> <C>
Less than 250...... 4.50% Less than 250...... 5.50%
250 - 499.......... 3.50 250 - 499.......... 4.50
500 - 749.......... 3.00 500 - 749.......... 3.50
750 - 999.......... 2.50 750 - 999.......... 2.50
1,000 or more...... 2.00 1,000 or more...... 2.00
</TABLE>
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DEFINED CORPORATE INCOME FUNDS
Our defined portfolios of corporate bonds offer investors
a simple and convenient way to earn monthly income. And
by purchasing corporate Defined Funds, investors not only
avoid the problem of selecting corporate bonds by
themselves, but also gain the advantage of
diversification by investing in bonds of several
different issuers.
MONTHLY INCOME
Even though the securities in the portfolio pay interest
semi-annually or annually, the Fund will make monthly
distributions of net interest income.
REINVESTMENT OPTION
You can elect to automatically reinvest your
distributions into a separate portfolio of corporate
bonds. Reinvesting helps to
compound your income and keeps your capital continuously
working for you.
INVESTMENT GRADE QUALITY
Each bond in the Fund has been selected by investment
professionals among available investment grade bonds or
those, in the opinion of Defined Asset Funds research
analysts, having comparable credit characteristics. Risk
is further reduced by purchasing bonds of a number of
different issuers and types.
PROFESSIONAL SELECTION AND SUPERVISION
Each bond in the Fund has been selected by experienced
buyers and market analysts. Spreading your investment
among different securities and issuers reduces your risk,
but does not eliminate it. The Fund is not actively
managed. However, the portfolio is regularly reviewed and
a security can be sold if retaining it could be
detrimental to investors' interests.
A LIQUID INVESTMENT
Although not legally required to do so, the Sponsors have
maintained a secondary market for Defined Asset Funds for
over 20 years. You can cash in your units at any time.
Your price is based on the market value of the Fund's
securities at that time as determined by an independent
evaluator. Or, you can exchange your investment for
another Defined Fund at a reduced sales charge. There is
never a fee for cashing in your investment.
PRINCIPAL DISTRIBUTIONS
Principal from sales, redemptions and maturities of bonds
in the Fund is distributed to investors periodically.
RISK FACTORS
Unit price fluctuates and is affected by interest rates
as well as the financial condition of the issuers of the
bonds.
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Information contained herein is subject to completion or amendment. A
registration statement relating to the securities of the next Trust in the
series of Corporate Income Fund has been filed with the Securities and Exchange
Commission. The securities of that Trust may not be sold nor may offers to buy
be accepted prior to the time that registration statement becomes effective.
This brochure shall not constitute an offer to sell or the solicitation of an
offer to buy nor shall there be any sale of these securities in any State in
which such offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such State.
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A free prospectus containing more complete information, including charges and
expenses, regarding this Trust is available from your financial professional.
Please read the prospectus carefully before you invest.
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PORTFOLIO OF CORPORATE INCOME FUND,
INSURED SERIES-- 25
DEFINED ASSET FUNDS
ON THE INITIAL DATE OF DEPOSIT,
FEBRUARY 24, 1995
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
RATINGS OF
ISSUES(1)
STANDARD OPTIONAL
PORTFOLIO NO. AND & FACE REFUNDING
SECURITIES CONTRACTED FOR POOR'S MOODY'S AMOUNT COUPON MATURITIES REDEMPTIONS (2)
------- ------- ------------ ----- ---------- --------------------
1. Consolidated Edison Company, A+ Aa3 $ 500,000 7.500% 6/15/23 6/15/03@ 103.27
Debentures
2. Georgia Power Company, First A A2 500,000 7.950 2/1/23 Currently@ 106.14
Mortgage Bonds
3. Jersey Central Power & Light BBB+ Baa1 500,000 6.750 11/1/25 10/27/03@ 102.82
Company, First Mortgage Bonds
4. New York Telephone Company, A A2 500,000 7.250 2/15/24 2/15/04@ 103.06
Debentures
5. Niagara Mohawk Power Company, BBB- Baa2 1,000,000 8.500 7/1/23 7/01/02@ 103.89
First Mortgage Bonds
6. Pacific Bell Telephone Company, AA Aa3 1,000,000 7.500 2/1/33 2/1/03@ 102.94
Debentures
7. Pacific Gas and Electric Company, A A2 1,000,000 8.250 11/1/22 12/1/02@ 103.14
First Mortgage Bonds
8. PECO Energy, First and Refunding BBB+ Baa1 1,000,000 8.625 6/1/22 6/4/97@ 105.57
Mortgage Bonds
9. Pennsylvania Power & Light A A2 500,000 7.875 2/1/23 2/1/03@ 103.57
Company, First Mortgage Bonds
10. Public Service Electric & Gas A A2 500,000 7.000 9/1/24 9/1/03@ 102.74
Company, First and Refunding
Mortgage Bonds
11. Texas Utilities Company, First BBB Baa2 1,000,000 7.875 3/1/23 3/1/03@ 103.84
Mortgage Bonds
------------
$ 8,000,000
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------------
</TABLE>
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NOTES
(1) These ratings do not reflect the fact that the scheduled principal and
interest payments for all the Debt Obligations, while retained in the Fund,
will be insured by MBIA. The MBIA Insurance is effective only while the
Debt Obligations are retained in the Fund. Any rating followed by '*' is
subject to submission and review of final documentation. Any rating
followed by 'p' is provisional and assumes the successful completion of the
project being financed.
(2) Bonds are first subject to optional redemptions (which may be exercised in
whole or in part) on the dates and at the prices indicated under the
Optional Refunding Redemptions column in the table. In subsequent years
bonds are redeemable at declining prices, but typically not below par
value. Some issues may be subject to sinking fund redemption or
extraordinary redemption without premium prior to the dates shown.
Certain Debt Obligations may provide for redemption at par prior or in
addition to any optional or mandatory redemption dates or maturity, for
example, through the operation of a maintenance and replacement fund, if
proceeds are not able to be used as contemplated, the project is condemned,
sold or the project is destroyed and insurance proceeds are used to redeem
the Debt Obligations or in other special circumstances.
Sinking fund redemptions are all at par and generally redeem only part of
an issue. Some of the Securities have mandatory sinking funds which contain
optional provisions permitting the issuer to increase the principal amount
of bonds called on a mandatory redemption date. The sinking fund
redemptions with optional provisions may, and optional refunding
redemptions generally will, occur at times when the redeemed Securities
have an offering side evaluation which represents a premium over par. To
the extent that the Securities were acquired at a price higher than the
redemption price, this will represent a loss of capital when compared with
the original Public Offering Price of the Units. Monthly distributions will
generally be reduced by the amount of the income which would otherwise have
been paid with respect to redeemed Securities and there will be distributed
to Holders any principal amount and premium received on such redemption
after satisfying any redemption requests received by the Fund. The
estimated current return and estimated long term return in this event may
be affected by redemptions.
---------------------------------------------
All Debt Obligations are represented entirely by contracts to purchase such Debt
Obligations, which were entered into by the Sponsors on February 23, 1995. All
contracts are expected to be settled by the initial settlement date for the
purchase of Units. All Debt Obligations have been insured by MBIA for the
period that they are retained by the Fund.
15062-2/95
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