ALCO CAPITAL RESOURCE INC
424B2, 1995-06-23
PAPER & PAPER PRODUCTS
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Pricing Supplement No. 40                                     Filing Under
                                                              Rule 424(b)(2)
(To Prospectus Supplement dated July 1, 1994
including the Prospectus dated June 29, 1994)

Trade Date: 6/22/95                                           Registration
           -------------------                                File No.
                                                              33-53779



                         Alco Capital Resource, Inc.
- --------------------------------------------------------------------------------

                              Medium Term Notes


CUSIP: 01374QAU2 
      ---------------------------------
Principal Amount: $ 13,000,000                 Floating Rate Notes: N/A       
                 ----------------------                      -------------------
Interest Rate (if fixed rate): 6.20%           Interest Rate Basis: N/A         
                              ---------                            -------------
Interest Payment Date(s):  N/A             -Commercial Paper Rate:              
                         --------------                           ----------  
    (other than June 15 and December 15)   -Prime Rate:                       
Regular Record Date(s):    N/A                         ---------------------  
                       ----------------    -LIBOR:                            
(other than May 31 and November)                  --------------------------  
Stated Maturity:  6/29/98                  -Treasury Rate:                     
                -----------------------                   ------------------   
                   --------------------    -CD Rate:                           
Applicable Exchange Rate (if any): N/A              ------------------------   
                                  -----    -Federal Funds Rate:                
   US Dollar $1.00 = N/A                                       -------------   
                    -------------------    -Other:                             
Issue Price (as a percentage of                   --------------------------   
             principal amount):  100%                                          
                               --------   Index Maturity: N/A                 
Selling Agent:                                            --------------------
  -Lehman Brothers:                       Spread: N/A                         
                   ----------------               ----------------------------
  -Chase Securities, Inc.:                Spread Multiplier: N/A              
                          ---------                         ------------------
  -Goldman, Sachs & Co:                   Maximum Interest Rate: N/A          
                       ------------                             --------------
  -Merrill Lynch & Co:     X              Minimum Interest Rate: N/A          
                      -------------                             --------------
  -Other:                                 Initial Interest Rate: N/A          
         --------------------------                             --------------
                                          Interest Reset Date(s)               
Selling Agent's Commission (%): .35%       (if semi-annually or annually):      
                               --------                                       
Purchasing Agent: N/A                     -------------------------------------
                 ----------------------        Third Wednesday of: N/A        
Purchasing Agent's Discount or                                 ----------------
   Commission (%): N/A                     Interest Reset Date (if weekly,    
                  ---------------------        monthly, or quarterly):          
Type of Sale:                                                         ----------
        As Agent:  X  As Principal:        Interest Determination Date(s): N/A
                 ----              ----                                 --------
Net proceeds to the Company:$12,954,500    Calculation Date(s): N/A          
                            -----------                        -----------------
Settlement date                            Calculation Agent: N/A       
  (original issue date): 6/27/95                              ------------------
                        ---------------    Interest Payment Date(s): N/A Date
Redemption Commencement                                            -------------
                -----------------------   (other than June 15 and December 15) 
Redemption Period: N/A                     Regular record Date(s): N/A          
                  ---------------------                           --------------
Exchange Rate Agent: N/A                    (other than May 31 and November 30) 
                    -------------------    Interest Reset Period: N/A           
Original Issue Discount Security:                                -------------  
        Yes:    No: X                                                           
            ----   ----                    
                                                               
Form:                                       
        Book Entry: X   Certificated       
                   ---              ---                         
Authorized by: /s/ Kathleen M. Burns                                            
              -----------------------------                                     
 



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