ALCO CAPITAL RESOURCE INC
424B2, 1996-02-21
PAPER & PAPER PRODUCTS
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<PAGE>
 
Pricing Supplement No. 28                                     Filing Under
                      ---                                     Rule 424(b)(2)
(To Prospectus Supplement dated June 30, 1995
including the Prospectus dated May 18, 1995)

Trade Date:   2/20/96                                         Registration
           -------------------                                File No.
                                                              33-59227



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

                              Medium Term Notes


CUSIP:  01374QBR8
      ---------------------------------
Principal Amount: $  5,000,000           Floating Rate Notes: N/A       
                 ----------------------                      -------------------
Interest Rate (if fixed rate): 5.61%           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 30)      -Treasury Rate:                    
                                                          ------------------  
Stated Maturity:  2/23/99                  -CD Rate:                            
                -----------------------             ------------------------   
Specified Currency: US DOLLARS             -Federal Funds Rate:                
                   --------------------                        -------------   
Applicable Exchange Rate (if any): N/A     -Other:                             
                                  -----           --------------------------   
   US Dollar $1.00 = N/A                                                       
                    -------------------                                        
Issue Price (as a percentage of          Index Maturity: N/A                    
             principal amount):  100%                   ------------------------
                               --------  Spread: N/A                            
Selling Agent:                                  --------------------------------
  -Lehman Brothers:                      Spread Multiplier: N/A                 
                   ----------------                        ---------------------
  -Chase Securities, Inc.:               Maximum Interest Rate: N/A             
                          ---------                            -----------------
  -Goldman, Sachs & Co:     X            Minimum Interest Rate: N/A          
                       ------------                            -----------------
  -Merrill Lynch & Co:                   Initial Interest Rate: N/A       
                      -------------                            -----------------
  -Other:                                  Interest Reset Date(s)          
         --------------------------        (if semi-annually or annually): 
                                                                           
Selling Agent's Commission (%): .35%       -------------------------------------
                               --------      Third Wednesday of: N/A      
Purchasing Agent: N/A                                           ----------------
                 ----------------------        Interest Reset Date (if weekly,
Purchasing Agent's Discount or                 monthly, or quarterly):    
   Commission (%): N/A                                                ----------
                  ---------------------  Interest Determination Date(s): N/A  
Type of Sale:                                                           --------
        As Agent: X   As Principal:      Calculation Date(s): N/A          
                 ----              ----                      -------------------
Net proceeds to the Company:$ 4,982,500  Calculation Agent: N/A          
                            -----------                    ---------------------
Settlement date                          Interest Payment Date(s): N/A     
  (original issue date): 2/23/96                                  --------------
                        ---------------  Regular Record Date(s): N/A      
Redemption Commencement                                         ----------------
  Date (if any): N/A                     Interest Reset Period: N/A       
                -----------------------                        -----------------
Redemption Period: N/A                   
                  ---------------------                        
Exchange Rate Agent: N/A                                      
                    -------------------                        
Original Issue Discount Security:                          
        Yes:    No: X                                             
            ----   ----                                        
                                         
Form:                                    
        Book Entry: X   Certificated             
                   ---              ---          

Authorized by: /s/ Katherine M. Burns  -  Katherine M. Burns
              ------------------------------------------------------


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