File No. 33-57200
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549-1004
POST-EFFECTIVE
AMENDMENT NO. 6
TO
FORM S-6
For Registration Under the Securities Act of 1933 of Securities
of Unit Investment Trusts Registered on Form N-8B-2
THE FIRST TRUST SPECIAL SITUATIONS TRUST, SERIES 50
GREAT PLAINS UTILITIES INCOME TRUST, SERIES 2 SUNBELT UTILITIES
INCOME TRUST, SERIES 1
(Exact Name of Trust)
NIKE SECURITIES L.P.
(Exact Name of Depositor)
1001 Warrenville Road
Lisle, Illinois 60532
(Complete address of Depositor's principal executive offices)
NIKE SECURITIES L.P. CHAPMAN AND CUTLER
Attn: James A. Bowen Attn: Eric F. Fess
1001 Warrenville Road 111 West Monroe Street
Lisle, Illinois 60532 Chicago, Illinois 60603
(Name and complete address of agents for service)
It is proposed that this filing will become effective (check
appropriate box)
: : immediately upon filing pursuant to paragraph (b)
: x : May 28, 1999
: : 60 days after filing pursuant to paragraph (a)
: : on (date) pursuant to paragraph (a) of rule (485 or 486)
Pursuant to Rule 24f-2 under the Investment Company Act of
1940, the issuer has registered an indefinite amount of
securities. A 24f-2 Notice for the offering was last filed on
April 28, 1999.
<PAGE>
THE FIRST TRUST SPECIAL SITUATIONS TRUST, SERIES 50
GREAT PLAINS UTILITIES INCOME TRUST, SERIES 2
298,178 UNITS
PROSPECTUS
Part One
Dated May 26, 1999
Note: Part One of this Prospectus may not be distributed unless accompanied by
Part Two and Part Three.
The Trust
The Great Plains Utilities Income Trust, Series 2 (the "Trust") is a unit
investment trust consisting of a portfolio of common stocks issued by public
utility companies incorporated or headquartered in the States of Colorado,
Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota
(the "Great Plains"), except up to 10% of the original portfolio at the
Initial Date of Deposit may consist of equity securities of public utility
companies outside this region. At April 16, 1999, each Unit represented a
1/298,178 undivided interest in the principal and net income of the Trust (see
"The Trust" in Part Two).
The Units being offered by this Prospectus are issued and outstanding Units
which have been purchased by the Sponsor in the secondary market or from the
Trustee after having been tendered for redemption. The profit or loss
resulting from the sale of Units will accrue to the Sponsor. No proceeds from
the sale of Units will be received by the Trust.
Public Offering Price
The Public Offering Price per 100 Units is equal to the aggregate value of the
Equity Securities in the Portfolio of the Trust, plus or minus cash, if any,
in the Income and Capital accounts of the Trust divided by the number of Units
outstanding, multiplied by 100, plus a sales charge of 3.0% of the Public
Offering Price (3.093% of the amount invested) excluding income and principal
cash). At April 16, 1999, the Public Offering Price per 100 Units was
$1,145.77 (see "Public Offering" in Part Two). The minimum purchase is
$1,000.
Please retain all parts of this Prospectus for future reference.
_____________________________________________________________________________
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE ACCURACY OR
ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
OFFENSE.
_____________________________________________________________________________
NIKE SECURITIES L.P.
Sponsor
<PAGE>
THE FIRST TRUST SPECIAL SITUATIONS TRUST, SERIES 50
GREAT PLAINS UTILITIES INCOME TRUST, SERIES 2
SUMMARY OF ESSENTIAL INFORMATION AS OF APRIL 16, 1999
Sponsor: Nike Securities L.P.
Evaluator: First Trust Advisors L.P.
Trustee: The Chase Manhattan Bank
<TABLE>
<CAPTION>
GENERAL INFORMATION
<S> <C>
Number of Units 298,178
Fractional Undivided Interest in the Trust per Unit 1/298,178
Public Offering Price:
Aggregate Value of Securities in the Portfolio $3,307,743
Aggregate Value of Securities per 100 Units $1,109.32
Income and Principal cash in the Portfolio $6,394
Income and Principal cash per 100 Units $2.14
Sales Charge 3.093% (3.0% of Public Offering Price,
excluding income and principal cash) per 100 Units $34.31
Public Offering Price per 100 Units $1,145.77
Redemption Price and Sponsor's Repurchase Price per
100 Units ($34.31 less than the Public Offering Price
per 100 Units) $1,111.46
</TABLE>
Date Trust Established February 17, 1993
Mandatory Termination Date March 1, 2000
<TABLE>
<S> <C>
Calculation of Estimated Net Annual Dividends per Unit:
Estimated Gross Annual Dividends per 100 Units
(based on the most recent quarterly dividend
declared by each issuer) $65.93
Estimated Annual Expense per 100 Units 2.25
______
Estimated Net Annual Dividends per 100 Units $63.68
======
</TABLE>
Evaluator's Annual Fee: $.30 per 100 Units outstanding. Evaluations for
purposes of sale, purchase or redemption of Units are made as of the close of
trading (4:00 p.m. Eastern time) on the New York Stock Exchange on each day on
which it is open.
Supervisory fee payable to an affiliate Maximum of $.25 per 100
of the Sponsor Units outstanding annually
Trustee's Annual Fee: $.74 per 100 Units outstanding.
Capital Distribution Record Date and Distribution Date: Distributions from
the Capital Account will be made monthly payable on the last day of the month
to Unit holders of record on the fifteenth day of such month if the amount
available for distribution equals at least $1.00 per 100 Units.
Notwithstanding, distributions of funds in the Capital Account, if any, will
be made in December of each year.
Income Distribution Record Date: Fifteenth day of each month.
Income Distribution Date: The last day of each month.
Discretionary Liquidation Amount: The Trust may be terminated if the value
thereof is less than 20% of the total value of Equity Securities deposited in
the Trust during the primary offering period, which results in a discretionary
liquidation amount of $1,542,428.
A Unit holder who owns at least 2,500 Units may request an "In-Kind
Distribution" upon tendering Units for redemption or upon termination of the
Trust. See "Rights of Unit Holders - How are Income and Capital Distributed?"
in Part Two.
<PAGE>
THIS PAGE INTENTIONALLY LEFT BLANK.
<PAGE>
REPORT OF INDEPENDENT AUDITORS
The Unit Holders of The First Trust
Special Situations Trust, Series 50,
Great Plains Utilities Income Trust, Series 2
We have audited the accompanying statement of assets and liabilities,
including the portfolio, of The First Trust Special Situations Trust, Series
50, Great Plains Utilities Income Trust, Series 2 as of January 31, 1999, and
the related statements of operations and changes in net assets for each of the
three years in the period then ended. These financial statements are the
responsibility of the Trust's Sponsor. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. Our
procedures included confirmation of securities owned as of January 31, 1999,
by correspondence with the Trustee. An audit also includes assessing the
accounting principles used and significant estimates made by the Sponsor, as
well as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of The First Trust Special
Situations Trust, Series 50, Great Plains Utilities Income Trust, Series 2 at
January 31, 1999, and the results of its operations and changes in its net
assets for each of the three years in the period then ended in conformity with
generally accepted accounting principles.
ERNST & YOUNG LLP
Chicago, Illinois
May 12, 1999
<PAGE>
THE FIRST TRUST SPECIAL SITUATIONS TRUST, SERIES 50
GREAT PLAINS UTILITIES INCOME TRUST, SERIES 2
STATEMENT OF ASSETS AND LIABILITIES
January 31, 1999
<TABLE>
<CAPTION>
ASSETS
<S> <C>
Equity securities, at market value (cost $3,032,952)
(Note 1) $4,213,140
Dividends receivable 13,669
Cash 19,617
__________
4,246,426
</TABLE>
<TABLE>
<CAPTION>
LIABILITIES AND NET ASSETS
<S> <C> <C>
Accrued liabilities 374
Distributions payable to unit holders 16,231
Unit redemptions payable 1,511
__________
18,116
__________
Net assets, applicable to 305,737 outstanding
Units of fractional undivided interest:
Cost of Trust assets $3,032,952
Net unrealized appreciation (Note 2) 1,180,188
Distributable funds 15,170
__________
$4,228,310
==========
Net asset value per 100 Units $1,382.99
==========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
THE FIRST TRUST SPECIAL SITUATIONS TRUST, SERIES 50
GREAT PLAINS UTILITIES INCOME TRUST, SERIES 2
PORTFOLIO - See notes to portfolio.
January 31, 1999
<TABLE>
<CAPTION>
Number Market
of Shares Name of Issuer of Equity Securities Value
<C> <S> <C>
537 (1) Alltel Corporation $34,670
9,071 Ameren Corporation 356,037
3,444 (2) Black Hills Corporation 85,456
2,092 CILCORP, Inc. 120,551
6,511 Empire District Electric Company 161,961
14,968 (3) Interstate Energy Company 430,330
8,528 Kansas City Power & Light Company 241,453
4,869 (2) MDU Resources Group, Inc. 111,987
1,487 Mediaone Group, Inc. (formerly
U.S. West Media Group, Inc.) 83,366
27,387 Midamerican Energy Holdings Company 734,328
4,052 Minnesota Power & Light Company 163,855
3,100 Montana Power Company 162,750
7,157 New Century Energies, Inc. 314,908
6,266 (4) Northern States Power Company 168,794
14,632 Northwestern Public Service Company 389,577
1,683 Otter Tail Power Company 72,579
2,140 (5) Sprint Corporation (FON Group) 179,493
1,103 (5) Sprint Corporation (PCS Group) 35,158
1,484 US West, Inc. 91,545
4,064 Utilicorp United, Inc. 142,240
4,202 Western Resources, Inc. 132,102
__________
Total investments $4,213,140
==========
</TABLE>
<PAGE>
THE FIRST TRUST SPECIAL SITUATIONS TRUST, SERIES 50
GREAT PLAINS UTILITIES INCOME TRUST, SERIES 2
NOTES TO PORTFOLIO
January 31, 1999
(1) In June 1998, 360 Communications Company (360), one of the Trust's
original holdings, was acquired by Alltel Corporation (Alltel). Each
shareholder of 360 received .74 shares of Alltel for each share of 360
held.
(2) The number of shares reflects the effect of a three for two stock split.
(3) In April 1998, IES Industries, Inc. (IES), one of the Trust's original
holdings, merged with Interstate Power Company (Interstate Power), which
was also one of the Trust's original holdings, to form Interstate Energy
Company (Interstate Energy). Each shareholder of IES received 1.14
shares of Interstate Energy Company for each share of IES held and each
shareholder of Interstate Power received one share of Interstate Energy
for each share of Interstate Power held.
(4) The number of shares reflects the effect of a two for one stock split.
(5) In November 1998, Sprint Corporation (FON Group) one of the Trust's
original holdings, spun off Sprint Corporation (PCS Group). Each
shareholder of FON Group received .5 shares of PCS Group for each share
of FON Group held.
See accompanying notes to financial statements.
<PAGE>
THE FIRST TRUST SPECIAL SITUATIONS TRUST, SERIES 50
GREAT PLAINS UTILITIES INCOME TRUST, SERIES 2
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Year ended January 31,
1999 1998 1997
<S> <C> <C> <C>
Dividend income $224,441 279,506 346,726
Expenses:
Trustee's fees and related expenses (5,715) (7,424) (8,259)
Evaluator's fees (1,022) (1,311) (1,680)
Supervisory fees (841) (1,245) (1,385)
________________________________
Total expenses (7,578) (9,980) (11,324)
________________________________
Investment income - net 216,863 269,526 335,402
Net gain (loss) on investments:
Net realized gain (loss) 207,882 125,463 8,280
Change in net unrealized appreciation
or depreciation 341,978 694,523 (59,348)
________________________________
549,860 819,986 (51,068)
________________________________
Net increase (decrease) in net assets
resulting from operations $766,723 1,089,512 284,334
================================
</TABLE>
See accompanying notes to financial statements.
<PAGE>
THE FIRST TRUST SPECIAL SITUATIONS TRUST, SERIES 50
GREAT PLAINS UTILITIES INCOME TRUST, SERIES 2
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year ended January 31,
1999 1998 1997
<S> <C> <C> <C>
Net increase (decrease) in net assets
resulting from operations:
Investment income - net $216,863 269,526 335,402
Net realized gain (loss) on investments 207,882 125,463 8,280
Change in net unrealized appreciation
or depreciation on investments 341,978 694,523 (59,348)
_________________________________
766,723 1,089,512 284,334
Unit redemptions (63,139, 129,762 and
111,660 in 1999, 1998 and 1997,
respectively) (840,531)(1,429,395) (1,120,973)
Distributions to unit holders:
Investment income - net (207,854) (265,415) (332,362)
Principal from investment transactions - - -
_________________________________
(207,854) (265,415) (332,362)
_________________________________
Total increase (decrease) in net assets (281,662) (605,298) (1,169,001)
Net assets:
At the beginning of each year 4,509,972 5,115,270 6,284,271
_________________________________
At the end of each year (including
distributable funds applicable to
Trust Units of $15,170, $12,509 and
$12,638 at January 31, 1999, 1998
and 1997, respectively) $4,228,310 4,509,972 5,115,270
=================================
Trust Units outstanding at the end of
each year 305,737 368,876 498,638
</TABLE>
See accompanying notes to financial statements.
<PAGE>
THE FIRST TRUST SPECIAL SITUATIONS TRUST, SERIES 50
GREAT PLAINS UTILITIES INCOME TRUST, SERIES 2
NOTES TO FINANCIAL STATEMENTS
1. Significant accounting policies
Security valuation -
The equity securities are stated at the closing sale prices of listed equity
securities and the bid prices of over-the-counter traded equity securities as
reported by First Trust Advisors L.P. (the Evaluator) an affiliate of the
Sponsor.
Investment income -
Dividends on each equity security are recognized on such equity security's ex-
dividend date.
Security cost -
Cost of the Trust's equity securities is based on the market value of such
securities on the dates the securities were deposited in the Trust. The cost
of securities sold is determined using the average cost method. Sales of
securities are recorded on the trade date.
Federal income taxes -
The Trust is not taxable for Federal income tax purposes. Each unit holder is
considered to be the owner of a pro rata portion of the Trust and,
accordingly, no provision has been made for Federal income taxes.
Expenses of the Trust -
The Trust pays a fee for Trustee services to The Chase Manhattan Bank which is
based on $.74 per annum per 100 Units outstanding based on the largest
aggregate number of Units outstanding during the year. In addition, the
Evaluator will receive an annual fee based on $.30 per 100 Units outstanding.
The Trust also pays recurring financial reporting costs and an annual
supervisory fee payable to an affiliate of the Sponsor.
2. Unrealized appreciation and depreciation
An analysis of net unrealized appreciation at January 31, 1999 follows:
<TABLE>
<S> <C>
Unrealized appreciation $1,194,407
Unrealized depreciation (14,219)
__________
$1,180,188
==========
</TABLE>
<PAGE>
3. Other information
Cost to investors -
The cost to initial investors of Units of the Trust was based on the aggregate
underlying value of the equity securities on the date of an investor's
purchase, plus a sales charge of 4.9% of the public offering price which is
equivalent to approximately 5.152% of the net amount invested.
Distributions to unit holders -
Income distributions to unit holders are made on the last day of each month to
unit holders of record on the fifteenth day of such month. Principal
distributions to unit holders, if any, are made on the last day of each month
to unit holders of record on the fifteenth day of such month if the amount
available for distribution equals at least $1.00 per 100 Units.
Notwithstanding, principal distributions, if any, will be made in December of
each year.
Selected data per 100 Units of the Trust
outstanding throughout each year -
<TABLE>
<CAPTION>
Year ended January 31,
1999 1998 1997
<S> <C> <C> <C>
Dividend income $66.72 63.97 62.57
Expenses (2.25) (2.29) (2.05)
_____________________________
Investment income - net 64.47 61.68 60.52
Distributions to unit holders:
Investment income - net (61.75) (60.33) (60.00)
Principal from investment transactions - - -
Net gain (loss) on investments 157.64 195.43 (4.38)
_____________________________
Total increase (decrease) in net assets 160.36 196.78 (3.86)
Net assets:
Beginning of the year 1,222.63 1,025.85 1,029.71
_____________________________
End of the year $1,382.99 1,222.63 1,025.85
=============================
</TABLE>
Dividend income, Expenses and Investment income - net per 100 Units have been
calculated based on the weighted average number of Units outstanding during
each year (336,371, 436,940 and 554,156 Units during the years ending January
31, 1999, 1998 and 1997, respectively). Distributions to unit holders of
Investment income - net per 100 Units reflects the Trust's actual
distributions paid or accrued during the period.
<PAGE>
THE FIRST TRUST SPECIAL SITUATIONS TRUST, SERIES 50
GREAT PLAINS UTILITIES INCOME TRUST, SERIES 2
PART ONE
Must be Accompanied by Part Two and Part Three
____________________
P R O S P E C T U S
____________________
SPONSOR: Nike Securities L.P.
1001 Warrenville Road
Lisle, Illinois 60532
(800) 621-1675
TRUSTEE: The Chase Manhattan Bank
4 New York Plaza, 6th Floor
New York, New York 10004-2413
LEGAL COUNSEL Chapman and Cutler
TO SPONSOR: 111 West Monroe Street
Chicago, Illinois 60603
LEGAL COUNSEL Carter, Ledyard & Milburn
TO TRUSTEE: 2 Wall Street
New York, New York 10005
INDEPENDENT Ernst & Young LLP
AUDITORS: Sears Tower
233 South Wacker Drive
Chicago, Illinois 60606
This Prospectus does not constitute an offer to sell, or a solicitation of an
offer to buy, securities in any jurisdiction to any person to whom it is not
lawful to make such offer in such jurisdiction.
This Prospectus does not contain all the information set forth in the
registration statement and exhibits relating thereto, which the Trust has
filed with the Securities and Exchange Commission, Washington, D.C., under the
Securities Act of 1933 and the Investment Company Act of 1940, and to which
reference is hereby made.
<PAGE>
THE FIRST TRUST SPECIAL SITUATIONS TRUST, SERIES 50
SUNBELT UTILITIES INCOME TRUST, SERIES 1
127,793 UNITS
PROSPECTUS
Part One
Dated May 26, 1999
Note: Part One of this Prospectus may not be distributed unless accompanied by
Part Two and Part Three.
The Trust
The Sunbelt Utilities Income Trust, Series 1 (the "Trust") is a Unit
investment trust consisting of a portfolio of common stocks issued by public
utility companies incorporated or headquartered in the States of Alabama,
Arkansas, Florida, Georgia, Louisiana, Mississippi, North Carolina, South
Carolina, Tennessee and Texas (the "Sunbelt"), except up to 10% of the
original portfolio at the Initial Date of Deposit may consist of equity
securities of public utility companies outside this region. At April 16,
1999, each Unit represented a 1/127,793 undivided interest in the principal
and net income of the Trust (see "The Trust" in Part Two).
The Units being offered by this Prospectus are issued and outstanding Units
which have been purchased by the Sponsor in the secondary market or from the
Trustee after having been tendered for redemption. The profit or loss
resulting from the sale of Units will accrue to the Sponsor. No proceeds from
the sale of Units will be received by the Trust.
Public Offering Price
The Public Offering Price per 100 Units is equal to the aggregate value of the
Equity Securities in the Portfolio of the Trust, plus or minus cash, if any,
in the Income and Capital Accounts of the Trust divided by the number of Units
outstanding, multiplied by 100, plus a sales charge of 3.0% of the Public
Offering Price (3.093% of the net amount invested) excluding income and
principal cash. At April 16, 1999, the Public Offering Price per 100 Units
was $1,271.32 (see "Public Offering" in Part Two). The minimum purchase is
$1,000.
Please retain all parts of this Prospectus for future reference.
_____________________________________________________________________________
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE ACCURACY OR
ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
OFFENSE.
_____________________________________________________________________________
NIKE SECURITIES L.P.
Sponsor
<PAGE>
THE FIRST TRUST SPECIAL SITUATIONS TRUST, SERIES 50
SUNBELT UTILITIES INCOME TRUST, SERIES 1
SUMMARY OF ESSENTIAL INFORMATION AS OF APRIL 16, 1999
Sponsor: Nike Securities L.P.
Evaluator: First Trust Advisors L.P.
Trustee: The Chase Manhattan Bank
<TABLE>
<CAPTION>
GENERAL INFORMATION
<S> <C>
Number of Units 127,793
Fractional Undivided Interest in the Trust per Unit 1/127,793
Public Offering Price:
Aggregate Value of Equity Securities in the Portfolio $1,576,817
Aggregate Value of Equity Securities per 100 Units 1,233.88
Income and Principal cash (overdraft) in the Portfolio $(914)
Income and Principal cash (overdraft) per 100 Units $(.72)
Sales Charge 3.093% (3.0% of Public Offering Price,
excluding income and principal cash) $38.16
Public Offering Price per 100 Units $1,271.32
Redemption Price and Sponsor's Repurchase Price per 100 Units
($38.16 less than the Public Offering Price per 100 Units) $1,233.16
</TABLE>
Date Trust Established February 17, 1993
Mandatory Termination Date March 1, 2000
<TABLE>
<S> <C>
Calculation of Estimated Net Annual Dividends per 100 Units:
Estimated Gross Annual Dividends per 100 Units (based on
the most recent quarterly dividend declared by each issuer) $59.67
Estimated Annual Expense per 100 Units 2.50
______
Estimated Net Annual Dividends per 100 Units $57.17
======
</TABLE>
Evaluator's Annual Fee: $.30 per 100 Units outstanding. Evaluations for
purposes of sale, purchase or redemption of Units are made as of the close of
trading (4:00 p.m. Eastern time) on the New York Stock Exchange on each day on
which it is open.
Supervisory fee payable to Maximum of $.25 per 100
an affiliate of the Sponsor Units outstanding annually
Trustee's Annual Fee: $.74 per 100 Units outstanding
Capital Distribution Record Date and Distribution Date: Distributions from
the Capital Account will be made monthly payable on the last day of the month
to Unit holders of record on the fifteenth day of such month if the amount
available for distribution equals at least $1.00 per 100 Units.
Notwithstanding, distributions of funds in the Capital Account, if any, will
be made in December of each year.
Income Distribution Record Date: Fifteenth day of each month.
Income Distribution Date: Last day of each month.
Discretionary Liquidation Amount: The Trust may be terminated if the value of
the Equity Securities is 20% of the total value of Equity Securities deposited
in the Trust during the primary offering period, which results in a
discretionary liquidation amount of $1,315,462.
A Unit holder who owns at least 2,500 Units may request an "In-Kind
Distribution" upon tendering Units for redemption or upon termination of the
Trust. See "Rights of Unit Holders - How are Income and Capital
Distributed?" in Part Two.
<PAGE>
THIS PAGE INTENTIONALLY LEFT BLANK.
<PAGE>
REPORT OF INDEPENDENT AUDITORS
The Unit Holders of The First Trust
Special Situations Trust, Series 50,
Sunbelt Utilities Income Trust, Series 1
We have audited the accompanying statement of assets and liabilities,
including the portfolio, of The First Trust Special Situations Trust, Series
50, Sunbelt Utilities Income Trust, Series 1 as of January 31, 1999, and the
related statements of operations and changes in net assets for each of the
three years in the period then ended. These financial statements are the
responsibility of the Trust's Sponsor. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. Our
procedures included confirmation of securities owned as of January 31, 1999,
by correspondence with the Trustee. An audit also includes assessing the
accounting principles used and significant estimates made by the Sponsor, as
well as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of The First Trust Special
Situations Trust, Series 50, Sunbelt Utilities Income Trust, Series 1 at
January 31, 1999, and the results of its operations and changes in its net
assets for each of the three years in the period then ended in conformity with
generally accepted accounting principles.
ERNST & YOUNG LLP
Chicago, Illinois
May 12, 1999
<PAGE>
THE FIRST TRUST SPECIAL SITUATIONS TRUST, SERIES 50
SUNBELT UTILITIES INCOME TRUST, SERIES 1
STATEMENT OF ASSETS AND LIABILITIES
January 31, 1999
<TABLE>
<CAPTION>
ASSETS
<S> <C>
Equity securities, at market value (cost $1,393,006)
(Note 1) $1,861,895
Dividends receivable 6,100
Cash 7,419
__________
1,875,414
</TABLE>
<TABLE>
<CAPTION>
LIABILITIES AND NET ASSETS
<S> <C> <C>
Accrued liabilities 177
Distributions payable to unit holders 6,625
__________
6,802
__________
Net assets, applicable to 139,074 outstanding
Units of fractional undivided interest:
Cost of Trust assets $1,393,006
Net unrealized appreciation (Note 2) 468,889
Distributable funds 6,717
__________
$1,868,612
==========
Net asset value per 100 Units $1,343.61
==========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
THE FIRST TRUST SPECIAL SITUATIONS TRUST, SERIES 50
SUNBELT UTILITIES INCOME TRUST, SERIES 1
PORTFOLIO - See notes to portfolio.
January 31, 1999
<TABLE>
<CAPTION>
Number Market
of Shares Name of Issuer of Equity Securities value
<C> <S> <C>
2,085 AGL Resources, Inc. $41,960
1,164 ALLTEL Corp. 75,151
6,625 Atmos Energy Corp. 197,511
2,803 (1) BellSouth Corp. 125,084
3,482 Carolina Power & Light Co. 144,938
1,274 Central & South West Corp. 33,682
4,247 CLECO Corporation (formerly
Central Louisiana Electric Co.) 133,781
589 Dominion Resources, Inc. 26,358
1,102 Duke Power Co. 68,118
10,230 (1) Energen Corp. 174,554
2,749 FPL Group, Inc. 150,851
3,145 Florida Progress Corp. 130,911
1,526 (2) LG & Energy Corporation 40,248
1,355 Piedmont Natural Gas Co. 41,836
3,168 Potomac Electric Power Company 73,856
4,778 SCANA Corp. 132,293
5,182 The Southern Co. 139,593
1,195 TECO Energy, Inc. 27,784
2,353 Texas Utilities Co. 103,386
__________
Total investments $1,861,895
==========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
THE FIRST TRUST SPECIAL SITUATIONS TRUST, SERIES 50
SUNBELT UTILITIES INCOME TRUST, SERIES 1
NOTES TO PORTFOLIO
January 31, 1999
(1) The number of shares reflects the effect of a two for one stock split.
(2) In May 1998, KU Energy Corporation, one of the Trust's original
holdings, was acquired by LG&E Corporation. Each shareholder of KU
Energy Corporation received 1.67 shares of LG&E Corporation for each
share of KU Energy Corporation held.
See accompanying notes to financial statements.
<PAGE>
THE FIRST TRUST SPECIAL SITUATIONS TRUST, SERIES 50
SUNBELT UTILITIES INCOME TRUST, SERIES 1
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Year ended January 31,
1999 1998 1997
<S> <C> <C> <C>
Dividend income $89,073 111,192 156,528
Expenses:
Trustee's fees and related expenses (2,948) (3,685) (5,074)
Evaluator's fees (464) (591) (820)
Supervisory fees (421) (493) (671)
________________________________
Total expenses (3,833) (4,769) (6,565)
________________________________
Investment income - net 85,240 106,423 149,963
Net gain (loss) on investments:
Net realized gain (loss) 109,317 64,988 105,741
Change in net unrealized appreciation
or depreciation (1,855) 243,936 (158,839)
________________________________
107,462 308,924 (53,098)
________________________________
Net increase (decrease) in net assets
resulting from operations $192,702 415,347 96,865
================================
</TABLE>
See accompanying notes to financial statements.
<PAGE>
THE FIRST TRUST SPECIAL SITUATIONS TRUST, SERIES 50
SUNBELT UTILITIES INCOME TRUST, SERIES 1
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year ended January 31,
1999 1998 1997
<S> <C> <C> <C>
Net increase (decrease) in net assets
resulting from operations:
Investment income - net $85,240 106,423 149,963
Net realized gain (loss) on investments 109,317 64,988 105,741
Change in net unrealized appreciation
or depreciation on investments (1,855) 243,936 (158,839)
__________________________________
192,702 415,347 96,865
Unit redemptions (31,251, 65,453
and 109,684 in 1999, 1998 and
1997, respectively) (421,802) (719,925) (1,190,133)
Distributions to unit holders:
Investment income - net (85,817) (106,557) (141,045)
Principal from investment transactions - - -
__________________________________
(85,817) (106,557) (141,045)
__________________________________
Total increase (decrease) in net assets (314,917) (411,135) (1,234,313)
Net assets:
At the beginning of the year 2,183,529 2,594,664 3,828,977
__________________________________
At the end of the year (including
distributable funds applicable to
Trust units of $6,717, $9,030 and
$11,901 at January 31, 1999, 1998
and 1997, respectively) $1,868,612 2,183,529 2,594,664
==================================
Trust units outstanding at the end of
the year 139,074 170,325 235,778
</TABLE>
See accompanying notes to financial statements.
<PAGE>
THE FIRST TRUST SPECIAL SITUATIONS TRUST, SERIES 50
SUNBELT UTILITIES INCOME TRUST, SERIES 1
NOTES TO FINANCIAL STATEMENTS
1. Significant accounting policies
Security valuation -
The equity securities are stated at the closing sale prices of listed equity
securities and the bid prices of over-the-counter traded equity securities, as
reported by the First Trust Advisors L.P. (the Evaluator) an affiliate of the
Sponsor.
Dividend income -
Dividends on each equity security are recognized on such equity security's ex-
dividend date.
Security cost -
Cost of the equity securities is based on the market value of such securities
on the dates the securities were deposited in the Trust. The cost of
securities sold is determined using the average cost method. Sales of
securities are recorded on the trade date.
Federal income taxes -
The Trust is not taxable for Federal income tax purposes. Each unit holder is
considered to be the owner of a pro rata portion of the Trust and,
accordingly, no provision has been made for Federal income taxes.
Expenses of the Trust -
The Trust pays a fee for Trustee services to The Chase Manhattan Bank which is
based on $.74 per annum per 100 units outstanding based on the largest
aggregate number of units outstanding during the year. In addition, the
Evaluator will receive an annual fee based on $.30 per 100 units outstanding.
The Trust also pays recurring financial reporting costs and an annual
supervisory fee payable to an affiliate of the Sponsor.
2. Unrealized appreciation and depreciation
An analysis of net unrealized appreciation at January 31, 1999 follows:
<TABLE>
<S> <C>
Unrealized appreciation $490,838
Unrealized depreciation (21,949)
________
$468,889
========
</TABLE>
<PAGE>
3. Other information
Cost to investors -
The cost to initial investors of Units of the Trust was based on the aggregate
underlying value of the equity securities on the date of an investor's
purchase, plus a sales charge of 4.9% of the public offering price which is
equivalent to approximately 5.152% of the net amount invested.
Distributions to unit holders -
Income distributions to unit holders are made on the last day of each month to
Unit holders of record on the fifteenth day of such month. Principal
distributions to Unit holders, if any, are made on the last day of each month
to Unit holders of record on the fifteenth day of such month if the amount
available for distribution equals at least $1.00 per 100 Units.
Notwithstanding, principal distributions, if any, will be made in December of
each year.
Selected data per 100 Units of the Trust
outstanding throughout each year -
<TABLE>
<CAPTION>
Year ended January 31,
1999 1998 1997
<S> <C> <C> <C>
Dividend income $58.11 56.44 58.33
Expenses (2.50) (2.42) (2.45)
_____________________________
Investment income - net 55.61 54.02 55.88
Distributions to unit holders:
Investment income - net (56.11) (54.38) (52.67)
Principal from investment transactions - - -
Net gain (loss) on investments 62.13 181.87 (11.10)
_____________________________
Total increase (decrease) in net assets 61.63 181.51 (7.89)
Net assets:
Beginning of the year 1,281.98 1,100.47 1,108.36
_____________________________
End of the year $1,343.61 1,281.98 1,100.47
=============================
</TABLE>
Dividend income, Expenses and Investment income - net per 100 units have been
calculated based on the weighted average number of units outstanding during
each period (153,283, 197,019 and 268,367 Units during the years ending
January 31, 1999, 1998 and 1997, respectively). Distributions to Unit holders
of Investment income - net per 100 units reflects the Trust's actual
distributions paid or accrued during the period.
<PAGE>
THE FIRST TRUST SPECIAL SITUATIONS TRUST, SERIES 50
SUNBELT UTILITIES INCOME TRUST, SERIES 1
PART ONE
Must be Accompanied by Part Two and Part Three
____________________
P R O S P E C T U S
____________________
SPONSOR: Nike Securities L.P.
1001 Warrenville Road
Lisle, Illinois 60532
(800) 621-1675
TRUSTEE: The Chase Manhattan Bank
4 New York Plaza, 6th Floor
New York, New York 10004-2413
LEGAL COUNSEL Chapman and Cutler
TO SPONSOR: 111 West Monroe Street
Chicago, Illinois 60603
LEGAL COUNSEL Carter, Ledyard & Milburn
TO TRUSTEE: 2 Wall Street
New York, New York 10005
INDEPENDENT Ernst & Young LLP
AUDITORS: Sears Tower
233 South Wacker Drive
Chicago, Illinois 60606
This Prospectus does not constitute an offer to sell, or a solicitation of an
offer to buy, securities in any jurisdiction to any person to whom it is not
lawful to make such offer in such jurisdiction.
This Prospectus does not contain all the information set forth in the
registration statement and exhibits relating thereto, which the Trust has
filed with the Securities and Exchange Commission, Washington, D.C., under the
Securities Act of 1933 and the Investment Company Act of 1940, and to which
reference is hereby made.
GREAT PLAINS UTILITIES TRUST SERIES
The First Trust (registered trademark) Special Situations Trust
PROSPECTUS NOTE: THIS PART THREE PROSPECTUS
Part Three MAY ONLY BE USED WITH
Dated May 28, 1999 PART ONE AND PART TWO
The Trusts. The Trusts consist of portfolios containing common stocks
issued by public utility companies incorporated or headquartered in the
States of Colorado, Iowa, Kansas, Minnesota, Missouri, Nebraska, North
Dakota and South Dakota (the "Great Plains"), except up to 10% of a
Trust's original portfolio at the Initial Date of Deposit may consist of
equity securities of public utility companies outside this region. The
Trusts do not include Treasury Obligations. See "Portfolio" appearing in
Part One for each Trust.
The Objective of the Trusts. The objective of the Trusts is to provide
for income and potential capital appreciation by investing each Trust's
portfolio in common stocks issued by public utility companies
incorporated or headquartered in the Great Plains, except up to 10% of a
Trust's original portfolio at the Initial Date of Deposit may consist of
equity securities of public utility companies outside this region ("the
Equity Securities"). There is, of course, no guarantee that the
objective of the Trusts will be achieved.
Dividend Distributions. The estimated annual dividend distribution to
Unit holders (based on the most recent quarterly or semi-annual ordinary
dividend declared with respect to the Equity Securities in a Trust) is
as indicated in Part One. The estimated annual dividend distributions
per Unit will vary with changes in fees and expenses of each Trust, with
changes in dividends received and with the sale or liquidation of Equity
Securities; therefore, there is no assurance that the annual dividend
distributions will be realized in the future.
Each month, the Trustee will distribute an amount substantially equal to
the Unit holder's pro rata share of the balance of the Income Account
calculated on the basis of one-twelfth of the estimated annual dividend
distributions in the Income Account after deducting estimated expenses
to Unit holders of record on the preceding Income Record Date. See
"Summary of Essential Information" appearing in Part One for each Trust.
Because dividends are not received by a Trust at a constant rate
throughout the year, such distributions to Unit holders may be more or
less than the amount credited to the Income Account as of the Record
Date. For the purpose of minimizing fluctuation in the distributions
from the Income Account, the Trustee is authorized to advance such
amounts as may be necessary to provide income distributions of
approximately equal amounts. The Trustee shall be reimbursed, without
interest, for any such advances from funds in the Income Account at the
ensuing Record Date.
Portfolio. Each Trust consists of different issues of Equity Securities,
all of which may be issued by public utility companies which may be
incorporated or headquartered in the Great Plains, except at the Initial
Date of Deposit, up to 10% of a portfolio may consist of equity
securities of public utility companies outside this region. Each of the
companies whose Equity Securities are included in a portfolio are listed
on a national securities exchange or The Nasdaq Stock Market or are
traded in the over-the-counter market. Each of the Great Plains public
utility companies whose Equity Securities are included in a portfolio,
in the view of the Sponsor, has significant ties with the Great Plains.
Each of the Great Plains companies may be incorporated in or has its
corporate headquarters in one of the states in the Great Plains and each
Great Plains company provides economic contributions to the Great Plains
through employment and the payment of taxes.
ALL PARTS OF THE PROSPECTUS SHOULD BE RETAINED FOR FUTURE REFERENCE.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES
AND EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE ACCURACY
OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
Page 1
The utility industry is recognized for its relative safety, stability
and as a high-yielding sector of the equity market. As such, a Trust may
be a suitable investment for investors seeking a fixed portfolio with a
known maturity, bond buyers needing a conservative equity investment and
utility stock buyers desiring greater diversification and frequent
monthly income.
An investment in Units of a Trust should be made with an understanding
of the characteristics of the utility industry and the risks which such
an investment may entail. General problems of the public utility
industry include the difficulty in obtaining an adequate return on
invested capital despite frequent increases in rates which have been
granted by the public service commissions having jurisdiction, the
difficulty in financing large construction programs during an
inflationary period, the restrictions on operations and increased cost
and delays attributable to environmental and other regulatory
considerations, the difficulty to the capital markets in absorbing
utility debt and securities, the difficulty in obtaining fuel for
electric generation at reasonable prices, and the effects of energy
conservation. There is no assurance that such public service commissions
will, in the future, grant rate increases or that any such increases
will be adequate to cover operating and other expenses and debt service
requirements. All of the public utilities which are issuers of the
Equity Securities in the portfolio have been experiencing many of these
problems in varying degrees. Furthermore, utility stocks are
particularly susceptible to interest rate risk, generally exhibiting an
inverse relationship to interest rates. As a result, utility stock
prices may be adversely affected as interest rates rise. The Sponsor
makes no prediction as to whether interest rates will rise or fall or
the effect, if any, interest rates may have on the Equity Securities in
the portfolio. In addition, federal, state and municipal governmental
authorities may from time to time review existing, and impose
additional, regulations governing the licensing, construction and
operation of nuclear power plants, which may adversely affect the
ability of the issuers of certain of the Equity Securities in a Trust's
portfolio to make dividend payments on their Equity Securities.
Utilities are generally subject to extensive regulation by state utility
commissions which, for example, establish the rates which may be charged
and the appropriate rate of return on an approved asset base, which must
be approved by the state commissions. Certain utilities have had
difficulty from time to time in persuading regulators, who are subject
to political pressures, to grant rate increases necessary to maintain an
adequate return on investment and voters in many states have the ability
to impose limits on rate adjustments (for example, by initiative or
referendum). Any unexpected limitations could negatively affect the
profitability of utilities whose budgets are planned far in advance. In
addition, gas pipeline and distribution companies have had difficulties
in adjusting to short and surplus energy supplies, enforcing or being
required to comply with long-term contracts and avoiding litigation from
their customers, on the one hand, or suppliers, on the other.
Certain of the issuers of the Equity Securities in a Trust may own or
operate nuclear generating facilities. Governmental authorities may from
time to time review existing, and impose additional, requirements
governing the licensing, construction and operation of nuclear power
plants. Nuclear generating projects in the electric utility industry
have experienced substantial cost increases, construction delays and
licensing difficulties. These have been caused by various factors,
including inflation, high financing costs, required design changes and
rework, allegedly faulty construction, objections by groups and
governmental officials, limits on the ability to finance, reduced
forecasts of energy requirements and economic conditions. This
experience indicates that the risk of significant cost increases, delays
and licensing difficulties remain present until completion and
achievement of commercial operation of any nuclear project. Also,
nuclear generating units in service have experienced unplanned outages
or extensions of scheduled outages due to equipment problems or new
regulatory requirements sometimes followed by a significant delay in
obtaining regulatory approval to return to service. A major accident at
a nuclear plant anywhere, such as the accident at a plant in Chernobyl,
could cause the imposition of limits or prohibitions on the operation,
construction or licensing of nuclear units in the United States.
In view of the uncertainties discussed above, there can be no assurance
that any company's share of the full cost of nuclear units under
construction ultimately will be recovered in rates or of the extent to
which a company could earn an adequate return on its investment in such
units. The likelihood of a significantly adverse event occurring in any
of the areas of concern described above varies, as does the potential
severity of any adverse impact. It should be recognized, however, that
one or more of such adverse events could occur and individually or
Page 2
collectively could have a material adverse impact on a company's
financial condition, the results of its operations, its ability to make
interest and principal payments on its outstanding debt or its ability
to pay dividends.
Other general problems of the gas, water, telephone and electric utility
industries (including state and local joint action power agencies)
include difficulty in obtaining timely and adequate rate increases,
difficulty in financing large construction programs to provide new or
replacement facilities during an inflationary period, rising costs of
rail transportation to transport fossil fuels, the uncertainty of
transmission service costs for both interstate and intrastate
transactions, changes in tax laws which adversely affect a utility's
ability to operate profitably, increased competition in service costs,
recent reductions in estimates of future demand for electricity and gas
in certain areas of the country, restrictions on operations and
increased cost and delays attributable to environmental considerations,
uncertain availability and increased cost of capital, unavailability of
fuel for electric generation at reasonable prices, including the steady
rise in fuel costs and the costs associated with conversion to alternate
fuel sources such as coal, availability and cost of natural gas for
resale, technical and cost factors and other problems associated with
construction, licensing, regulation and operation of nuclear facilities
for electric generation, including among other considerations the
problems associated with the use of radioactive materials and the
disposal of radioactive wastes, and the effects of energy conservation.
Each of the problems referred to could adversely affect the ability of
the issuers of any Equity Securities in the Trusts to make dividend
payments.
The average common stock dividend yield of utilities has exceeded that
of the Standard & Poor's ("S&P") 500 stocks. There can be no assurance
that the historical investment performance for any industry (including
the public utilities industry) is indicative of future performance.
However, during periods of lower interest rates, dividend yields on
utility common stocks are often attractive. In times of both economic
weakness and lower interest rates, utility stocks have outperformed most
other equity issues in terms of price and dividend stability. However,
during periods of rising interest rates, the prices of utility common
stocks typically decline.
Public Offering. The applicable sales charge is reduced by a discount as
indicated below for volume purchases:
<TABLE>
<CAPTION>
Discount
Dollar Amount per 100
of Transaction Units
_________________ _________
<S> <C>
$ 50,000 to $ 99,999 .25%
$100,000 to $249,999 .50%
$250,000 to $499,999 1.00%
$500,000 or more 2.00%
</TABLE>
A dealer will receive from the Sponsor a dealer concession of 70% of the
total sales charges for Units sold.
Any such reduced sales charge shall be the responsibility of the selling
underwriter or dealer. The reduced sales charge structure will apply on
all purchases of Units in a Trust by the same person on any one day from
any one underwriter or dealer. Additionally, Units purchased in the name
of the spouse of a purchaser or in the name of a child of such purchaser
under 21 years of age will be deemed, for the purposes of calculating
the applicable sales charge, to be additional purchases by the
purchaser. The reduced sales charges will also be applicable to a
trustee or other fiduciary purchasing securities for a single trust
estate or single fiduciary account. The purchaser must inform the
underwriter or dealer of any such combined purchase prior to the sale in
order to obtain the indicated discount. In addition, with respect to the
employees, officers and directors (including their immediate family
members, defined as spouses, children, grandchildren, parents,
grandparents, mothers-in-law, fathers-in-law, sons-in-law and daughters-
in-law, and trustees, custodians or fiduciaries for the benefit of such
persons) of the Sponsor and the underwriters and their subsidiaries, the
sales charge is reduced by 2.0% of the Public Offering Price.
Page 3
Great Plains Utilities Trust Series
The First Trust (registered trademark) Special Situations Trust
PART THREE PROSPECTUS
Must be Accompanied by Parts One and Two
SPONSOR: Nike Securities L.P.
1001 Warrenville Road
Lisle, Illinois 60532
(800) 621-1675
TRUSTEE: The Chase Manhattan Bank
4 New York Plaza, 6th floor
New York, New York 10004-2413
LEGAL COUNSEL Chapman and Cutler
TO SPONSOR: 111 West Monroe Street
Chicago, Illinois 60603
LEGAL COUNSEL Carter, Ledyard & Milburn
TO TRUSTEE: 2 Wall Street
New York, New York 10005
INDEPENDENT Ernst & Young LLP
AUDITORS: Sears Tower
233 South Wacker Drive
Chicago, Illinois 60606
THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFER TO SELL, OR A SOLICITATION
OF AN OFFER TO BUY, SECURITIES IN ANY JURISDICTION TO ANY PERSON TO WHOM
IT IS NOT LAWFUL TO MAKE SUCH OFFER IN SUCH JURISDICTION.
THIS PROSPECTUS DOES NOT CONTAIN ALL THE INFORMATION SET FORTH IN THE
REGISTRATION STATEMENTS AND EXHIBITS RELATING THERETO, WHICH THE TRUST
HAS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION, WASHINGTON, D.C.
UNDER THE SECURITIES ACT OF 1933 AND THE INVESTMENT COMPANY ACT OF 1940,
AND TO WHICH REFERENCE IS HEREBY MADE.
PLEASE RETAIN ALL PARTS OF THIS PROSPECTUS FOR FUTURE REFERENCE.
Page 4
SUNBELT UTILITIES INCOME TRUST SERIES
The First Trust (registered trademark) Special Situations Trust
PROSPECTUS NOTE: THIS PART THREE PROSPECTUS
Part Three MAY ONLY BE USED WITH
Dated May 28, 1999 PART ONE AND PART TWO
The Trusts. The Trusts consist of portfolios containing common stocks
issued by public utility companies incorporated or headquartered in the
States of Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi,
North Carolina, South Carolina, Tennessee and Texas (the "Sunbelt"),
except up to 10% of a Trust's original portfolio at the Initial Date of
Deposit may consist of equity securities of public utility companies
outside this region. The Trusts do not include Treasury Obligations. See
"Portfolio" appearing in Part One for each Trust.
The Objective of the Trusts. The objective of the Trusts is to provide
for income and potential capital appreciation by investing each Trust's
portfolio in common stocks issued by public utility companies
incorporated or headquartered in the Sunbelt, except up to 10% of the
original portfolio at the Initial Date of Deposit may consist of equity
securities of public utility companies outside this region ("the Equity
Securities"). There is, of course, no guarantee that the objective of
the Trusts will be achieved.
Dividend Distributions. The estimated annual dividend distribution to
Unit holders (based on the most recent quarterly or semi-annual ordinary
dividend declared with respect to the Equity Securities in a Trust) is
as indicated in Part One. The estimated annual dividend distributions
per Unit will vary with changes in fees and expenses of each Trust, with
changes in dividends received and with the sale or liquidation of Equity
Securities; therefore, there is no assurance that the annual dividend
distributions will be realized in the future.
Each month, the Trustee will distribute an amount substantially equal to
the Unit holder's pro rata share of the balance of the Income Account
calculated on the basis of one-twelfth of the estimated annual dividend
distributions in the Income Account after deducting estimated expenses
to Unit holders of record on the preceding Income Record Date. See
"Summary of Essential Information" appearing in Part One for each Trust.
Because dividends are not received by a Trust at a constant rate
throughout the year, such distributions to Unit holders may be more or
less than the amount credited to the Income Account as of the Record
Date. For the purpose of minimizing fluctuation in the distributions
from the Income Account, the Trustee is authorized to advance such
amounts as may be necessary to provide income distributions of
approximately equal amounts. The Trustee shall be reimbursed, without
interest, for any such advances from funds in the Income Account at the
ensuing Record Date.
Portfolio. Each Trust consists of different issues of Equity Securities,
all of which may be issued by public utility companies which may be
incorporated or headquartered in the Sunbelt, except at the Initial Date
of Deposit, up to 10% of a portfolio may consist of equity securities of
public utility companies outside this region. Each of the companies
whose Equity Securities are included in a portfolio are listed on a
national securities exchange or The Nasdaq Stock Market or are traded in
the over-the-counter market. Each of the Sunbelt public utility
companies whose Equity Securities are included in a portfolio, in the
view of the Sponsor, has significant ties with the Sunbelt. Each of the
Sunbelt companies may be incorporated in or has its corporate
headquarters in one of the states in the Sunbelt and each Sunbelt
company provides economic contributions to the Sunbelt through
employment and the payment of taxes.
ALL PARTS OF THE PROSPECTUS SHOULD BE RETAINED FOR FUTURE REFERENCE.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES
AND EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE ACCURACY
OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
Page 1
The utility industry is recognized for its relative safety, stability
and as a high-yielding sector of the equity market. As such, a Trust may
be a suitable investment for investors seeking a fixed portfolio with a
known maturity, bond buyers needing a conservative equity investment and
utility stock buyers desiring greater diversification and frequent
monthly income.
An investment in Units of a Trust should be made with an understanding
of the characteristics of the utility industry and the risks which such
an investment may entail. General problems of the public utility
industry include the difficulty in obtaining an adequate return on
invested capital despite frequent increases in rates which have been
granted by the public service commissions having jurisdiction, the
difficulty in financing large construction programs during an
inflationary period, the restrictions on operations and increased cost
and delays attributable to environmental and other regulatory
considerations, the difficulty to the capital markets in absorbing
utility debt and securities, the difficulty in obtaining fuel for
electric generation at reasonable prices, and the effects of energy
conservation. There is no assurance that such public service commissions
will, in the future, grant rate increases or that any such increases
will be adequate to cover operating and other expenses and debt service
requirements. All of the public utilities which are issuers of the
Equity Securities in the portfolio have been experiencing many of these
problems in varying degrees. Furthermore, utility stocks are
particularly susceptible to interest rate risk, generally exhibiting an
inverse relationship to interest rates. As a result, utility stock
prices may be adversely affected as interest rates rise. The Sponsor
makes no prediction as to whether interest rates will rise or fall or
the effect, if any, interest rates may have on the Equity Securities in
the portfolio. In addition, federal, state and municipal governmental
authorities may from time to time review existing, and impose
additional, regulations governing the licensing, construction and
operation of nuclear power plants, which may adversely affect the
ability of the issuers of certain of the Equity Securities in a Trust's
portfolio to make dividend payments on their Equity Securities.
Utilities are generally subject to extensive regulation by state utility
commissions which, for example, establish the rates which may be charged
and the appropriate rate of return on an approved asset base, which must
be approved by the state commissions. Certain utilities have had
difficulty from time to time in persuading regulators, who are subject
to political pressures, to grant rate increases necessary to maintain an
adequate return on investment and voters in many states have the ability
to impose limits on rate adjustments (for example, by initiative or
referendum). Any unexpected limitations could negatively affect the
profitability of utilities whose budgets are planned far in advance. In
addition, gas pipeline and distribution companies have had difficulties
in adjusting to short and surplus energy supplies, enforcing or being
required to comply with long-term contracts and avoiding litigation from
their customers, on the one hand, or suppliers, on the other.
Certain of the issuers of the Equity Securities in a Trust may own or
operate nuclear generating facilities. Governmental authorities may from
time to time review existing, and impose additional, requirements
governing the licensing, construction and operation of nuclear power
plants. Nuclear generating projects in the electric utility industry
have experienced substantial cost increases, construction delays and
licensing difficulties. These have been caused by various factors,
including inflation, high financing costs, required design changes and
rework, allegedly faulty construction, objections by groups and
governmental officials, limits on the ability to finance, reduced
forecasts of energy requirements and economic conditions. This
experience indicates that the risk of significant cost increases, delays
and licensing difficulties remain present until completion and
achievement of commercial operation of any nuclear project. Also,
nuclear generating units in service have experienced unplanned outages
or extensions of scheduled outages due to equipment problems or new
regulatory requirements sometimes followed by a significant delay in
obtaining regulatory approval to return to service. A major accident at
a nuclear plant anywhere, such as the accident at a plant in Chernobyl,
could cause the imposition of limits or prohibitions on the operation,
construction or licensing of nuclear units in the United States.
In view of the uncertainties discussed above, there can be no assurance
that any company's share of the full cost of nuclear units under
construction ultimately will be recovered in rates or of the extent to
which a company could earn an adequate return on its investment in such
units. The likelihood of a significantly adverse event occurring in any
of the areas of concern described above varies, as does the potential
severity of any adverse impact. It should be recognized, however, that
one or more of such adverse events could occur and individually or
Page 2
collectively could have a material adverse impact on a company's
financial condition, the results of its operations, its ability to make
interest and principal payments on its outstanding debt or its ability
to pay dividends.
Other general problems of the gas, water, telephone and electric utility
industries (including state and local joint action power agencies)
include difficulty in obtaining timely and adequate rate increases,
difficulty in financing large construction programs to provide new or
replacement facilities during an inflationary period, rising costs of
rail transportation to transport fossil fuels, the uncertainty of
transmission service costs for both interstate and intrastate
transactions, changes in tax laws which adversely affect a utility's
ability to operate profitably, increased competition in service costs,
recent reductions in estimates of future demand for electricity and gas
in certain areas of the country, restrictions on operations and
increased cost and delays attributable to environmental considerations,
uncertain availability and increased cost of capital, unavailability of
fuel for electric generation at reasonable prices, including the steady
rise in fuel costs and the costs associated with conversion to alternate
fuel sources such as coal, availability and cost of natural gas for
resale, technical and cost factors and other problems associated with
construction, licensing, regulation and operation of nuclear facilities
for electric generation, including among other considerations the
problems associated with the use of radioactive materials and the
disposal of radioactive wastes, and the effects of energy conservation.
Each of the problems referred to could adversely affect the ability of
the issuers of any Equity Securities in the Trusts to make dividend
payments.
The average common stock dividend yield of utilities has exceeded that
of the Standard & Poor's ("S&P") 500 stocks. There can be no assurance
that the historical investment performance for any industry (including
the public utilities industry) is indicative of future performance.
However, during periods of lower interest rates, dividend yields on
utility common stocks are often attractive. In times of both economic
weakness and lower interest rates, utility stocks have outperformed most
other equity issues in terms of price and dividend stability. However,
during periods of rising interest rates, the prices of utility common
stocks typically decline.
Public Offering. The applicable sales charge is reduced by a discount as
indicated below for volume purchases:
Discount
Dollar Amount per 100
of Transaction Units
________________ ________
$ 50,000 to $ 99,999 .25%
$100,000 to $ 249,999 .50%
$250,000 to $ 499,999 1.00%
$500,000 or more 2.00%
A dealer will receive from the Sponsor a dealer concession of 70% of the
total sales charges for Units sold.
Any such reduced sales charge shall be the responsibility of the selling
underwriter or dealer. The reduced sales charge structure will apply on
all purchases of Units in a Trust by the same person on any one day from
any one underwriter or dealer. Additionally, Units purchased in the name
of the spouse of a purchaser or in the name of a child of such purchaser
under 21 years of age will be deemed, for the purposes of calculating
the applicable sales charge, to be additional purchases by the
purchaser. The reduced sales charges will also be applicable to a
trustee or other fiduciary purchasing securities for a single trust
estate or single fiduciary account. The purchaser must inform the
underwriter or dealer of any such combined purchase prior to the sale in
order to obtain the indicated discount. In addition, with respect to the
employees, officers and directors (including their immediate family
members, defined as spouses, children, grandchildren, parents,
grandparents, mothers-in-law, fathers-in-law, sons-in-law and daughters-
in-law, and trustees, custodians or fiduciaries for the benefit of such
persons) of the Sponsor and the underwriters and their subsidiaries, the
sales charge is reduced by 2.0% of the Public Offering Price.
Page 3
Sunbelt Utilities Income Trust Series
The First Trust (registered trademark) Special Situations Trust
PART THREE PROSPECTUS
Must be Accompanied by Parts One and Two
SPONSOR: Nike Securities L.P.
1001 Warrenville Road
Lisle, Illinois 60532
(800) 621-1675
TRUSTEE: The Chase Manhattan Bank
4 New York Plaza, 6th floor
New York, New York 10004-2413
LEGAL COUNSEL Chapman and Cutler
TO SPONSOR: 111 West Monroe Street
Chicago, Illinois 60603
LEGAL COUNSEL Carter, Ledyard & Milburn
TO TRUSTEE: 2 Wall Street
New York, New York 10005
INDEPENDENT Ernst & Young LLP
AUDITORS: Sears Tower
233 South Wacker Drive
Chicago, Illinois 60606
THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFER TO SELL, OR A SOLICITATION
OF AN OFFER TO BUY, SECURITIES IN ANY JURISDICTION TO ANY PERSON TO WHOM
IT IS NOT LAWFUL TO MAKE SUCH OFFER IN SUCH JURISDICTION.
THIS PROSPECTUS DOES NOT CONTAIN ALL THE INFORMATION SET FORTH IN THE
REGISTRATION STATEMENTS AND EXHIBITS RELATING THERETO, WHICH THE TRUST
HAS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION, WASHINGTON, D.C.
UNDER THE SECURITIES ACT OF 1933 AND THE INVESTMENT COMPANY ACT OF 1940,
AND TO WHICH REFERENCE IS HEREBY MADE.
PLEASE RETAIN ALL PARTS OF THIS PROSPECTUS FOR FUTURE REFERENCE.
Page 4
CONTENTS OF POST-EFFECTIVE AMENDMENT
OF REGISTRATION STATEMENT
This Post-Effective Amendment of Registration Statement
comprises the following papers and documents:
The facing sheet
The prospectus
The signatures
The Consent of Independent Auditors
S-1
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933,
the Registrant, THE FIRST TRUST SPECIAL SITUATIONS TRUST, SERIES
50 GREAT PLAINS UTILITIES INCOME TRUST, SERIES 2 SUNBELT
UTILITIES INCOME TRUST, SERIES 1, certifies that it meets all of
the requirements for effectiveness of this Registration Statement
pursuant to Rule 485(b) under the Securities Act of 1933 and has
duly caused this Post-Effective Amendment of its Registration
Statement to be signed on its behalf by the undersigned thereunto
duly authorized in the Village of Lisle and State of Illinois on
May 28, 1999.
THE FIRST TRUST SPECIAL SITUATIONS TRUST,
SERIES 50
GREAT PLAINS UTILITIES INCOME TRUST, SERIES
2 SUNBELT UTILITIES INCOME TRUST, SERIES
1
(Registrant)
By NIKE SECURITIES L.P.
(Depositor)
By Robert M. Porcellino
Senior Vice President
Pursuant to the requirements of the Securities Act of 1933,
this Post-Effective Amendment of Registration Statement has been
signed below by the following person in the capacity and on the
date indicated:
Signature Title Date
Robert D. Van Kampen Director of )
Nike Securities )
Corporation, ) May 28, 1999
the General Partner )
of Nike Securities L.P. )
)
) Robert M. Porcellino
David J. Allen Director of Nike ) Attorney-in-Fact**
Securities Corporation,
the General Partner of
Nike Securities L.P.
* The title of the person named herein represents his capacity
in and relationship to Nike Securities L.P., Depositor.
** An executed copy of the related power of attorney was filed
with the Securities and Exchange Commission in connection
with the Amendment No. 1 to Form S-6 of The First Trust
Combined Series 258 (File No. 33-63483) and the same is
hereby incorporated herein by this reference.
S-2
CONSENT OF INDEPENDENT AUDITORS
We consent to the reference to our firm under the caption
"Experts" and to the use of our report dated May 12, 1999 in this
Post-Effective Amendment to the Registration Statement and
related Prospectus of The First Trust Special Situations Trust
dated May 26, 1999.
ERNST & YOUNG LLP
Chicago, Illinois
May 25, 1999
