<PAGE>
RULE NO. 424(b)(2)
REGISTRATION NO. 33-65301
PROSPECTUS SUPPLEMENT TO PROSPECTUS DATED MAY 31, 1996
$250,000,000
LOGO BANKERS TRUST NEW YORK CORPORATION
6 5/8% NOTES DUE JULY 30, 1999
------------------
Interest on the Offered Notes is payable by Bankers Trust New York
Corporation (the "Corporation") semi-annually on July 30 and January 30 of
each year, beginning January 30, 1997, and the Offered Notes will mature on
July 30, 1999.
The Offered Notes may not be redeemed prior to their maturity and are not
subject to any sinking fund. See "Description of Debt Securities" in the
Prospectus accompanying this Prospectus Supplement.
The Offered Notes will be represented by Global Debt Securities registered
in the name of the nominee of The Depository Trust Company, New York, New York
("DTC"), which will act as the Depository. Interests in the Offered Notes
represented by Global Debt Securities will be shown on, and transfers thereof
will be effected only through, records maintained by the Depository and its
direct and indirect participants. Except as described herein, Offered Notes in
definitive form will not be issued. Settlement for the Offered Notes will be
made in immediately available funds. The Offered Notes will trade in the
Depository's Same-Day Funds Settlement System and secondary market trading
activity for the Offered Notes will therefore settle in immediately available
funds. All payments of principal and interest will be made by the Corporation
in immediately available funds or the equivalent. See "Certain Terms of the
Offered Notes--Same-Day Settlement and Payment."
------------------
THE OFFERED NOTES ARE NOT DEPOSITS OR OTHER OBLIGATIONS OF A BANK AND ARE
NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER
GOVERNMENTAL AGENCY.
------------------
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION
PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS SUPPLEMENT OR
THE PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
OFFENSE.
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------
Underwriting
Price to Discounts and Proceeds to
Public(1) Commissions Corporation(1)(2)
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Per Offered Note 99.755% .300% 99.455%
- ---------------------------------------------------------------------------------------------
Total $249,387,500 $750,000 $248,637,500
- ---------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------
</TABLE>
1. Plus accrued interest from July 26, 1996, if any.
2. Before deduction of expenses payable by the Corporation estimated at
$100,000.
------------------
The Offered Notes offered by the Underwriters are subject to prior sale,
receipt and acceptance by them and subject to the right of the Underwriters to
reject any order in whole or in part and to certain other conditions. It is
expected that delivery of the Offered Notes, in book entry form, will be made
through the facilities of DTC on or about July 26, 1996 against payment in
immediately available funds.
UBS SECURITIES
BT SECURITIES CORPORATION
CHASE SECURITIES INC.
July 23, 1996
<PAGE>
BANKERS TRUST NEW YORK CORPORATION
GENERAL
Bankers Trust New York Corporation (the "Corporation") is a bank holding
company, incorporated under the laws of the State of New York in 1965. At June
30, 1996, the Corporation had consolidated total assets of $114.6 billion. The
Corporation's principal banking subsidiary is Bankers Trust Company
("Bankers"). Bankers, founded in 1903, is among the largest commercial banks in
New York City and the United States, based on consolidated total assets. The
Corporation concentrates its financial and managerial resources on selected
markets and services its clients by meeting their needs for financing,
advisory, processing and sophisticated risk management solutions. The core
organizational units of the Corporation are Investment Banking, Risk Management
Products & Services, Trading & Sales, Investment Management, Client Processing
Services, Australia/New Zealand, Asia, Latin America and Corporate. Among the
institutional market segments served are corporations, banks, other financial
institutions, governments and agencies, retirement plans, not-for-profit
organizations, wealthy individuals, foundations and private companies. Bankers
originates loans and other forms of credit, accepts deposits, arranges
financings and provides numerous other commercial banking and financial
services. Bankers provides a broad range of financial advisory services to its
clients. It also engages in the proprietary trading of currencies, securities,
derivatives and commodities.
The Corporation is a legal entity separate and distinct from its
subsidiaries, including Bankers. There are various legal limitations governing
the extent to which certain of the Corporation's subsidiaries may extend
credit, pay dividends or otherwise supply funds to, or engage in transactions
with, the Corporation or certain of its other subsidiaries. The rights of the
Corporation to participate in any distribution of assets of any subsidiary upon
its dissolution, winding-up, liquidation or reorganization or otherwise are
subject to the prior claims of creditors of that subsidiary, except to the
extent that the Corporation may itself be a creditor of that subsidiary and its
claims are recognized. Claims on the Corporation's subsidiaries by creditors
other than the Corporation include long-term debt and substantial obligations
with respect to deposit liabilities, trading liabilities, federal funds
purchased, securities sold under repurchase agreements and commercial paper, as
well as short-term borrowings and accounts payable.
The Corporation's principal executive offices are located at 130 Liberty
Street, New York, New York 10006 and its telephone number is (212) 250-2500.
CONSOLIDATED RATIOS OF EARNINGS TO FIXED CHARGES
<TABLE>
<CAPTION>
SIX MONTHS
ENDED JUNE
YEAR ENDED DECEMBER 31, 30,
------------------------ ----------
1991 1992 1993 1994 1995 1996
---- ---- ---- ---- ---- ----------
<S> <C> <C> <C> <C> <C> <C>
Excluding Interest on Deposits....... 1.40 1.44 1.71 1.28 1.05 1.18
Including Interest on Deposits....... 1.22 1.28 1.48 1.21 1.03 1.14
</TABLE>
For purposes of computing these consolidated ratios, earnings represent
income before income taxes, cumulative effects of accounting changes and equity
in undistributed income of unconsolidated subsidiaries and affiliates, plus
fixed charges excluding capitalized interest. Fixed charges represent all
interest expense (ratios are presented both excluding and including interest on
deposits), the portion of net rental expense which is deemed representative of
the interest factor, the amortization of debt issuance expense and capitalized
interest.
CONSOLIDATED RESULTS OF OPERATIONS
The Corporation earned $151 million, or $1.67 primary earnings per share, in
the first quarter of 1996. The second quarter earnings improved from both the
first quarter 1996 results of $138 million, or $1.52 primary earnings per
share, and from the second quarter 1995 results of $91 million, or $.98 primary
earnings per share. Return on average common equity increased to 13% in the
second quarter of 1996.
Details with respect to the foregoing are set forth in the Corporation's
Current Report on Form 8-K dated July 18, 1996, which is incorporated herein by
reference.
S-2
<PAGE>
SELECTED CONSOLIDATED FINANCIAL DATA AND OTHER INFORMATION
The following selected consolidated financial data at and for each of the
three years ended December 31, 1995, have been derived from and are qualified
in their entirety by the detailed financial information and consolidated
financial statements of the Corporation included in its Annual Report on Form
10-K for the year ended December 31, 1995 ("Form 10-K") which is incorporated
herein by reference.
The consolidated financial data at and for the six months ended June 30,
1995 and 1996 are unaudited but, in the opinion of management, all material
adjustments necessary for a fair presentation of the Corporation's results of
operations for such periods have been made. All such adjustments were of a
normal recurring nature. The results for the six months ended June 30, 1996,
are not necessarily indicative of the results for the full year or any other
interim period.
<TABLE>
<CAPTION>
AT OR FOR THE AT OR FOR THE
YEAR ENDED SIX MONTHS ENDED
DECEMBER 31, JUNE 30,
------------------------- -----------------
1993 1994 1995 1995 1996
------- ------- ------- ------- -------
($ IN MILLIONS, EXCEPT PER SHARE DATA)
<S> <C> <C> <C> <C> <C>
Condensed Consolidated
Statement of Income:
Interest revenue........... $ 4,436 $ 5,030 $ 5,886 $ 2,873 $ 3,254
Interest expense........... 3,122 3,858 5,069 2,469 2,798
------- ------- ------- ------- -------
Net interest revenue....... 1,314 1,172 817 404 456
Provision for credit loss-
es........................ 93 25 31 14 5
------- ------- ------- ------- -------
Net interest revenue after
provision for credit
losses.................... 1,221 1,147 786 390 451
Noninterest revenue........ 3,364 2,473 2,423 929 1,548
Noninterest expenses....... 3,035 2,751 2,898 1,412 1,586
------- ------- ------- ------- -------
Income (loss) before in-
come taxes and cumulative
effects of accounting
changes................... 1,550 869 311 (93) 413
Income taxes (benefit)..... 480 254 96 (27) 124
------- ------- ------- ------- -------
Income (loss) before cumu-
lative effects of ac-
counting changes.......... 1,070 615 215 (66) 289
Cumulative effects of ac-
counting changes (1)...... (75) -- -- -- --
------- ------- ------- ------- -------
Net income (loss).......... $ 995 $ 615 $ 215 $ (66) $ 289
======= ======= ======= ======= =======
Net income (loss) applica-
ble to common stock....... $ 972 $ 587 $ 164 $ (86) $ 260
======= ======= ======= ======= =======
Per Common Share Data:
Primary earnings (loss)
per share
Income (loss) before cu-
mulative effects of ac-
counting changes......... $ 12.40 $ 7.17 $ 2.03 $ (1.10) $ 3.19
Net income (loss)......... 11.51 7.17 2.03 (1.10) 3.19
Fully diluted earnings
(loss) per share
Income (loss) before cu-
mulative effects of ac-
counting changes......... 12.29 7.17 2.02 (1.10) 3.17
Net income (loss)......... 11.41 7.17 2.02 (1.10) 3.17
Cash dividends declared.... 3.24 3.70 4.00 2.00 2.00
--as a percentage of net
income (2)............... 26% 52% 198% N/M 63%
Book value (3)............. $ 51.90 $ 53.67 $ 50.58 $ 49.80 $ 51.86
Profitability Ratios:
Return on average common
stockholders' equity (2).. 26.33% 13.48% 3.98% N/M 12.4%
Return on average total
assets (2)................ 1.25 .59 .20 N/M .50
Consolidated Balances, End
of Period:
Trading assets............. $48,276 $47,514 $47,893 $50,565 $43,775
Loans...................... 15,200 12,501 12,633 11,537 14,249
Total assets............... 92,082 97,016 104,002 102,937 114,601
Deposits................... 22,776 24,939 25,708 22,605 25,293
Securities sold under re-
purchase agreements....... 23,834 15,617 15,247 18,933 24,050
Other short-term
borrowings................ 18,992 18,222 15,761 14,010 15,211
Long-term debt............. 5,597 6,455 9,294 7,514 11,253
Common stockholders' equi-
ty........................ 4,284 4,309 4,119 4,026 4,301
Total stockholders' equi-
ty........................ 4,534 4,704 4,984 4,889 5,167
Consolidated Capital Ratios,
End of Period:
Common stockholders' eq-
uity to total assets...... 4.65% 4.44% 3.96% 3.9% 3.8%
Total stockholders' equity
to total assets........... 4.92 4.85 4.79 4.8 4.5
Risk-based capital ratios
(4)
Tier 1 Capital........... 8.50 9.05 8.51 8.6 8.3
Total Capital............ 14.46 14.77 13.90 13.9 13.5
Leverage Ratio............. 6.28 5.26 5.12 5.5 5.5
EMPLOYEES................... 13,571 14,529 14,069 13,787 14,278
</TABLE>
- -------
(1) The Corporation adopted the accounting standards for postretirement
benefits other than pensions (SFAS 106) and postemployment benefits (SFAS
112) effective January 1, 1993.
(2) These figures exclude the cumulative effects of accounting changes
recorded in 1993.
(3) This calculation includes the effect of the vested portion of common
shares issuable under deferred stock awards.
(4) At December 31, 1995, December 31, 1994 and December 31, 1993, all three
regulatory capital ratios excluded any benefit from the adoption of SFAS
115. Regulatory capital ratios at June 30, 1996, are preliminary.
N/M--Not meaningful
S-3
<PAGE>
CERTAIN TERMS OF THE OFFERED NOTES
GENERAL
The Corporation's 6 5/8% Notes due July 30, 1999 offered hereby (the "Offered
Notes") will be limited to $250,000,000 aggregate principal amount and will
mature on July 30, 1999. The Offered Notes may not be redeemed prior to stated
maturity and are not entitled to any sinking fund. The Offered Notes will be
issued pursuant to an Indenture, dated as of November 1, 1991, between the
Corporation and The Chase Manhattan Bank, as Trustee (the "Trustee"), as
supplemented by the First Supplemental Indenture thereto, dated as of September
1, 1993, between the Corporation and the Trustee (collectively, the
"Indenture"). The Offered Notes will bear interest at the rate of 6 5/8% per
annum from July 26, 1996, payable semi-annually on January 30 and July 30 in
each year, beginning on January 30, 1997, to the persons in whose names the
Offered Notes (or any predecessor Offered Notes) are registered at the close of
business on the January 15 and July 15 next preceding such interest payment
date.
The Offered Notes will be issued in fully registered form, in denominations
of $1,000 and integral multiples of $1,000 in excess thereof. The paying agent,
registrar and transfer agent for the Offered Notes will be the corporate trust
department of Bankers in The City of New York.
Reference should be made to the Prospectus for a description of other terms
of the Offered Notes and the information contained herein concerning the
Offered Notes is qualified by reference to the provisions of the Indenture,
including the definitions therein of certain terms. See "Description of Debt
Securities." Defined terms used but not defined in this Prospectus Supplement
have the meanings ascribed to them in the Prospectus.
BOOK-ENTRY SYSTEM
The Offered Notes will be issued in the form of one or more fully registered
Global Securities (collectively, the "Global Security"), which will be
deposited with, or on behalf of, The Depository Trust Company, New York, New
York ("DTC"), as depository for the Global Security (the "Depository"), and
registered in the name of DTC's nominee. Transfers or exchanges of beneficial
interests in the Global Security may be effected only through a participating
member of DTC. Under certain limited circumstances Offered Notes may be issued
in certificated form in exchange for the Global Security. See "Book-Entry
Securities" in the Prospectus accompanying this Prospectus Supplement. In the
event that Offered Notes are issued in certificated form, such Offered Notes
may be transferred or exchanged at the offices described in the second
following paragraph.
Payment of principal of, and interest on, Offered Notes registered in the
name of DTC or its nominee will be made to DTC or its nominee, as the case may
be, as the registered owner of the Global Security. None of the Corporation,
the Trustee, any Paying Agent or any other agent of the Corporation or the
Trustee will have any responsibility or liability for any aspect of the records
relating to or payments made on account of beneficial ownership interests in
the Global Security or for maintaining, supervising or reviewing any records
relating to such beneficial ownership interests.
In the event that Offered Notes are issued in certificated form, principal
and interest will be payable, the transfer of the Offered Notes will be
registrable and Offered Notes will be exchangeable for Offered Notes bearing
identical terms and provisions at the office of the agent of the Corporation in
The City of New York designated for such purpose, provided that payment of
interest may be made at the option of the Corporation by check mailed to the
address of the person entitled thereto.
S-4
<PAGE>
SAME-DAY SETTLEMENT AND PAYMENT
Settlement for the Offered Notes will be made by the Underwriters in
immediately available funds. All payments of principal and interest will be
made by the Corporation in immediately available funds or the equivalent, so
long as the Depository continues to make its Same-Day Funds Settlement System
available to the Corporation.
Secondary trading in long-term notes and debentures of corporate issuers is
generally settled in clearinghouse or next-day funds. In contrast, the Offered
Notes will trade in the Depository's Same-Day Funds Settlement System, and
secondary market trading activity in the Offered Notes will therefore be
required by the Depository to settle in immediately available funds. No
assurance can be given as to the effect, if any, of settlement in immediately
available funds on trading activity in the Offered Notes.
EXPERTS
The consolidated financial statements of the Corporation for the year ended
December 31, 1995, appearing in the Annual Report on Form 10-K for the year
ended December 31, 1995, and incorporated by reference in this Prospectus
Supplement, the accompanying Prospectus and the Registration Statement, have
been audited by Ernst & Young LLP, independent auditors, as set forth in their
report thereon included therein and incorporated herein by reference. Such
consolidated financial statements are incorporated herein by reference in
reliance upon such report given upon the authority of such firm as experts in
auditing and accounting.
VALIDITY OF OFFERED NOTES
The validity of the Offered Notes will be passed upon for the Corporation by
Gordon S. Calder, Jr., Esq., a Managing Director and Counsel of Bankers, and
for the Underwriters by White & Case, New York, New York. White & Case performs
services for the Corporation from time to time. Mr. Calder has an interest in a
number of shares equal to less than 0.02 percent of the Corporation's
outstanding common stock.
S-5
<PAGE>
UNDERWRITING
Under the terms and subject to the conditions contained in an Underwriting
Agreement dated July 23, 1996, the Underwriters named below have severally
agreed to purchase and the Corporation has agreed to sell to them, severally,
the respective principal amounts of Offered Notes set forth below.
<TABLE>
<CAPTION>
PRINCIPAL
NAME AMOUNT
---- ------------
<S> <C>
UBS Securities LLC.............................................. $200,000,000
BT Securities Corporation....................................... 25,000,000
Chase Securities Inc. .......................................... 25,000,000
------------
Total....................................................... $250,000,000
============
</TABLE>
The Underwriting Agreement provides that the obligations of the Underwriters
are subject to certain conditions precedent.
The Corporation has agreed to indemnify the Underwriters against certain
liabilities, including liabilities under the Securities Act of 1933, as
amended.
The Corporation currently has no intention to list the Offered Notes on any
securities exchange, and there can be no assurance that there will be a
secondary market for the Offered Notes. However, from time to time, the
Underwriters may make a market in the Offered Notes.
The Corporation has been advised by UBS Securities LLC, BT Securities
Corporation and Chase Securities Inc. that the Underwriters propose to offer
the Offered Notes to the public initially at the offering price set forth on
the cover page of this Prospectus Supplement and to certain dealers at such
price less a concession not in excess of .20% of the principal amount of the
Offered Notes; that the Underwriters and such dealers may reallow a discount
not in excess of .10% of such principal amount on sales to certain other
dealers; and that after the initial public offering the public offering price
and concession and discount to dealers may be changed by the Underwriters.
This Prospectus Supplement and the accompanying Prospectus may also be
delivered in connection with sales of the Offered Notes by affiliates of the
Corporation that have acquired such Offered Notes.
Underwriters and certain of their associates and affiliates may be customers
of (including borrowers from), engage in transactions with, and/or perform
services for the Corporation and its subsidiaries (including Bankers) in the
ordinary course of business.
BT Securities Corporation is a wholly owned subsidiary of the Corporation.
The underwriting arrangements for this offering comply with the requirements of
Schedule E of the By-laws of the National Association of Securities Dealers,
Inc. ("NASD") regarding an NASD member firm's underwriting securities of an
affiliate.
S-6
<PAGE>
PROSPECTUS
- ----------
U.S.$1,050,000,000
[LOGO] BANKERS TRUST NEW YORK CORPORATION
DEBT SECURITIES, COMMON STOCK AND SERIES PREFERRED STOCK
Bankers Trust New York Corporation (the "Corporation") may offer from time to
time up to U.S.$1,050,000,000 aggregate principal amount, or its equivalent
(based on the applicable exchange rate at the time of offering) in such foreign
currencies, or units of two or more thereof, as shall be designated by the
Corporation at the time of offering, of one or more series of debt securities
(the "Debt Securities"), common stock, par value $1.00 per share (the "Common
Stock"), or one or more series of its series preferred stock, without par value
(the "Series Preferred Stock"), interests in which may be represented by
depositary shares (the "Depositary Shares"). If Debt Securities are issued at
an original issue discount, the Corporation may issue such higher principal
amount as may be sold for an initial public offering price of up to
U.S.$1,050,000,000, or its equivalent (based on the applicable exchange rate at
the time of offering) in such foreign currencies or units of two or more
thereof, as shall be designated by the Corporation at the time of offering. The
Debt Securities may be senior debt securities (the "Senior Debt Securities") or
subordinated debt securities (the "Subordinated Debt Securities"). Debt
Securities, Common Stock, Series Preferred Stock and Depositary Shares
(collectively, the "Offered Securities") will be offered on terms to be
determined at the time of offering. The specific title, the aggregate principal
amount, the purchase price, the maturity, the rate and time of payment of any
interest, any redemption provisions, any terms of conversion or exchange and
any other specific terms of the Debt Securities in respect of which this
Prospectus is being delivered are set forth in the accompanying supplement to
this Prospectus (the "Prospectus Supplement"). If Common Stock is offered, the
Prospectus Supplement will set forth the number of shares of Common Stock, the
initial public offering price and any other terms of the offering. If Series
Preferred Stock is offered, the Prospectus Supplement will set forth the
specific title, number of shares of Series Preferred Stock and number of
Depositary Shares, if any, any dividend, liquidation, redemption, conversion,
exchange, voting or other rights, the initial public offering price and any
other terms of the offering.
The Offered Securities may be sold by the Corporation directly or through
agents or dealers. In addition, the Offered Securities may be sold to or
through underwriting syndicates led by one or more managing underwriters or
through one or more underwriters acting alone pursuant to offering terms fixed
at the time of offering. The agents and dealers or underwriters in connection
with the sale of any Offered Securities will be set forth in the applicable
Prospectus Supplement.
The Senior Debt Securities, when issued, will rank on a parity with all other
unsecured and unsubordinated indebtedness of the Corporation. The Subordinated
Debt Securities, when issued, will be unsecured and subordinated as described
herein under "Description of Debt Securities--Subordination--Subordinated Debt
Securities." Payment of the principal of the Subordinated Debt Securities may
be accelerated only in the case of certain events involving the bankruptcy,
insolvency or reorganization of the Corporation. There is no right of
acceleration of payment of Subordinated Debt Securities in the case of a
default in the performance of any covenant of the Corporation, including the
payment of principal or interest. See "Description of Debt Securities--Events
of Default--Subordinated Debt Securities."
----------------
THE OFFERED SECURITIES WILL NOT BE DEPOSITS OR OTHER OBLIGATIONS OF A BANK AND
WILL NOT BE INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER
GOVERNMENTAL AGENCY.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION
PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
----------------
Following the initial distribution of any Offered Securities, BT Securities
Corporation ("BT Securities") and other affiliates of the Corporation may offer
and sell such securities in the course of their business as broker-dealers. BT
Securities and such other affiliates may act as principal or agent in such
transactions. This Prospectus and the accompanying Prospectus Supplement may be
used by BT Securities and such other affiliates in connection with such
transactions. Such sales, if any, will be made at varying prices related to
prevailing market prices at the time of sale.
The date of this Prospectus is May 31, 1996.
<PAGE>
FOR NORTH CAROLINA INVESTORS: THE COMMISSIONER OF INSURANCE OF THE STATE OF
NORTH CAROLINA HAS NOT APPROVED OR DISAPPROVED THIS OFFERING, NOR HAS THE
COMMISSIONER PASSED UPON THE ACCURACY OR ADEQUACY OF THIS
PROSPECTUS OR THE ACCOMPANYING PROSPECTUS SUPPLEMENT.
AVAILABLE INFORMATION
The Corporation is subject to the informational requirements of the
Securities Exchange Act of 1934, as amended (the "Exchange Act"), and in
accordance therewith files reports, proxy statements and other information with
the Securities and Exchange Commission (the "Commission"). Such reports, proxy
statements and other information concerning the Corporation can be inspected
and copied at the Commission's office at 450 Fifth Street, N.W., Washington,
D.C. 20549, and the Commission's Regional Offices in New York (Seven World
Trade Center, 13th Floor, New York, New York 10048) and Chicago (500 West
Madison Street, Suite 1400, Chicago, Illinois 60661), and copies of such
material can be obtained from the Public Reference Section of the Commission at
450 Fifth Street, N.W., Washington, D.C. 20549, at prescribed rates. In
addition, such material can be inspected at the office of the New York Stock
Exchange and the office of the American Stock Exchange on which certain
securities of the Corporation are listed. This Prospectus does not contain all
of the information set forth in the Registration Statement, of which this
Prospectus is a part which the Corporation has filed with the Commission under
the Securities Act of 1933, as amended (the "Securities Act"), and to which
reference is hereby made.
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
The Corporation hereby incorporates by reference in this Prospectus the
following documents:
(a) The Corporation's Annual Report on Form 10-K (file number 1-5920) for
the year ended December 31, 1995, filed pursuant to Section 13 of the
Exchange Act;
(b) The Corporation's Quarterly Report on Form 10-Q (file number 1-5920)
for the quarter ended March 31, 1996, filed pursuant to Section 13 of the
Exchange Act;
(c) The Corporation's Current Reports on Form 8-K (file number 1-5920)
dated March 19, April 15, April 25, May 3 and May 22, 1996; and
(d) The description of the Corporation's Common Stock set forth in the
Registration Statement on Form 8-C (file number 1-5920), filed pursuant to
Section 12 of the Exchange Act.
All documents filed by the Corporation pursuant to Section 13(a), 13(c), 14
or 15(d) of the Exchange Act subsequent to the date of this Prospectus and
prior to the termination of the offering of the Offered Securities shall be
deemed to be incorporated by reference into this Prospectus and to be a part
hereof from the date of filing of such documents. Any statement contained in a
document incorporated or deemed to be incorporated by reference herein shall be
deemed to be modified or superseded for purposes of this Prospectus to the
extent that a statement contained herein or in any other subsequently filed
document that also is or is deemed to be incorporated by reference herein or in
any accompanying Prospectus Supplement modifies or supersedes such statement.
Any such statement so modified or superseded shall not be deemed, except as so
modified or superseded, to constitute a part of this Prospectus.
Any person who receives a copy of this Prospectus may obtain without charge,
upon written or oral request, a copy of any of the documents incorporated by
reference herein, except for the exhibits to such documents (unless such
exhibits are specifically incorporated by reference herein). Written requests
should be mailed to the Office of the Secretary, Bankers Trust New York
Corporation, 130 Liberty Street, New York, New York, 10006. Telephone requests
may be directed to (212) 250-2201.
---------------
NO DEALER, SALESMAN OR OTHER PERSON HAS BEEN AUTHORIZED TO GIVE ANY
INFORMATION OR TO MAKE ANY REPRESENTATIONS, OTHER THAN THOSE CONTAINED IN THIS
PROSPECTUS OR ANY ACCOMPANYING PROSPECTUS SUPPLEMENT, IN CONNECTION WITH THE
OFFERING CONTAINED HEREIN, AND, IF GIVEN OR MADE, SUCH INFORMATION AND
REPRESENTATIONS MUST NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED BY THE
CORPORATION. THIS PROSPECTUS AND ANY ACCOMPANYING PROSPECTUS SUPPLEMENT DO NOT
CONSTITUTE AN OFFER OF ANY SECURITIES OTHER THAN THOSE TO WHICH THEY RELATE OR
AN OFFER TO ANY PERSON IN ANY JURISDICTION WHERE SUCH AN OFFER WOULD BE
UNLAWFUL OR IN WHICH THE PERSON MAKING SUCH OFFER OR SOLICITATION IS NOT
QUALIFIED TO DO SO. NEITHER THE DELIVERY OF THIS PROSPECTUS OR ANY ACCOMPANYING
PROSPECTUS SUPPLEMENT NOR ANY SALE MADE HEREUNDER SHALL, UNDER ANY
CIRCUMSTANCES, CREATE ANY IMPLICATION THAT INFORMATION HEREIN IS CORRECT AS OF
ANY TIME SUBSEQUENT TO THE DATE THEREOF OR, IN THE CASE OF INFORMATION
INCORPORATED HEREIN BY REFERENCE, THE DATE OF FILING WITH THE COMMISSION.
2
<PAGE>
BANKERS TRUST NEW YORK CORPORATION
GENERAL
Bankers Trust New York Corporation (the "Corporation") is a bank holding
company, incorporated under the laws of the State of New York in 1965. At March
31, 1996, the Corporation had consolidated total assets of $108.1 billion. The
Corporation's principal banking subsidiary is Bankers Trust Company
("Bankers"). Bankers, founded in 1903, is among the largest commercial banks in
New York City and the United States, based on consolidated total assets. The
Corporation concentrates its financial and managerial resources on selected
markets and services its clients by meeting their needs for financing,
advisory, processing and sophisticated risk management solutions. The core
organizational units of the Corporation are Investment Banking, Risk Management
Products & Services, Trading & Sales, Investment Management, Client Processing
Services, Asia, Latin America, Australia/New Zealand and Corporate. Among the
institutional market segments served are corporations, banks, other financial
institutions, governments and agencies, retirement plans, not-for-profit
organizations, wealthy individuals, foundations and private companies. Bankers
originates loans and other forms of credit, accepts deposits, arranges
financings and provides numerous other commercial banking and financial
services. Bankers provides a broad range of financial advisory services to its
clients. It also engages in the proprietary trading of currencies, securities,
derivatives and commodities.
The Corporation is a legal entity separate and distinct from its
subsidiaries, including Bankers. There are various legal limitations governing
the extent to which certain of the Corporation's subsidiaries may extend
credit, pay dividends or otherwise supply funds to, or engage in transactions
with, the Corporation or certain of its other subsidiaries. The rights of the
Corporation to participate in any distribution of assets of any subsidiary upon
its dissolution, winding-up, liquidation or reorganization or otherwise are
subject to the prior claims of creditors of that subsidiary, except to the
extent that the Corporation may itself be a creditor of that subsidiary and its
claims are recognized. Claims on the Corporation's subsidiaries by creditors
other than the Corporation include long-term debt and substantial obligations
with respect to deposit liabilities, trading liabilities, federal funds
purchased, securities sold under repurchase agreements and commercial paper, as
well as short-term borrowings and accounts payable.
The Corporation's principal executive offices are located at 280 Park Avenue,
New York, New York 10017 and its telephone number is (212) 250-2500.
CONSOLIDATED RATIOS OF EARNINGS TO COMBINED FIXED CHARGES
<TABLE>
<CAPTION>
THREE MONTHS
ENDED
YEAR ENDED DECEMBER 31, MARCH 31,
------------------------ ------------
1991 1992 1993 1994 1995 1996
---- ---- ---- ---- ---- ------------
<S> <C> <C> <C> <C> <C> <C>
Excluding Interest on Deposits........ 1.40 1.44 1.71 1.28 1.05 1.18
Including Interest on Deposits........ 1.22 1.28 1.48 1.21 1.03 1.14
</TABLE>
For purposes of computing these consolidated ratios, earnings represent
income before income taxes, cumulative effects of accounting changes and equity
in undistributed income of unconsolidated subsidiaries and affiliates, plus
fixed charges excluding capitalized interest. Fixed charges represent all
interest expense (ratios are presented both excluding and including interest on
deposits), the portion of net rental expense which is deemed representative of
the interest factor, the amortization of debt issuance expense and capitalized
interest.
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CONSOLIDATED RATIOS OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK
DIVIDEND REQUIREMENTS
<TABLE>
<CAPTION>
THREE MONTHS ENDED
YEAR ENDED DECEMBER 31, MARCH 31,
------------------------ ------------------
1991 1992 1993 1994 1995 1996
---- ---- ---- ---- ---- ------------------
<S> <C> <C> <C> <C> <C> <C>
Excluding Interest on
Deposits............... 1.37 1.41 1.69 1.27 1.03 1.16
Including Interest on
Deposits............... 1.21 1.26 1.47 1.20 1.02 1.12
</TABLE>
For purposes of computing these consolidated ratios, earnings represent
income before income taxes, cumulative effects of accounting changes and equity
in undistributed income of unconsolidated subsidiaries and affiliates, plus
fixed charges excluding capitalized interest. Fixed charges represent all
interest expense (ratios are presented both excluding and including interest on
deposits), the portion of net rental expense which is deemed representative of
the interest factor, the amortization of debt issuance expense and capitalized
interest. Fixed charges are then combined with preferred stock dividend
requirements, adjusted to a pretax basis, on the outstanding preferred stock.
USE OF PROCEEDS
Unless otherwise indicated in the applicable Prospectus Supplement, the net
proceeds from the sale of the Offered Securities will be used for general
corporate purposes, including investments in, or extensions of credit to, the
Corporation's subsidiaries. Except as described in the applicable Prospectus
Supplement, specific allocations of the proceeds to such purposes have not been
made, although management will have determined at the date of the applicable
Prospectus Supplement that funds should be borrowed at that time. The precise
amount and timing of such investments in, or extensions of credit to,
subsidiaries will depend on the subsidiaries' funding requirements and the
availability of other funds. Pending such applications, such net proceeds may
be temporarily invested or applied to the reduction of short-term indebtedness.
DESCRIPTION OF DEBT SECURITIES
Senior Debt Securities may be issued from time to time in one or more series
under an Indenture, dated as of November 1, 1991, as amended by the First
Supplemental Indenture, dated as of September 1, 1993 (as so supplemented, the
"Senior Indenture"), between the Corporation and The Chase Manhattan Bank
(National Association), as Trustee (the "Senior Trustee"). Subordinated Debt
Securities may be issued from time to time in one or more series under either
an Indenture, dated as of April 1, 1992, as amended by the First Supplemental
Indenture, dated as of January 15, 1993 (as so supplemented, the "First
Subordinated Indenture"), between the Corporation and Marine Midland Bank,
N.A., as Trustee (the "First Subordinated Trustee") or under an indenture (the
"Second Subordinated Indenture," and with the First Subordinated Indenture, the
"Subordinated Indentures"), to be entered into before the first issuance of
securities thereunder, between the Corporation and a trustee to be named in the
Prospectus Supplement applicable to the first series of Debt Securities to be
issued pursuant to such indenture (the "Second Subordinated Trustee," and with
the First Subordinated Trustee, the "Subordinated Trustees"). The Senior
Indenture and the Subordinated Indentures are sometimes referred to
collectively as the "Indentures," and the Senior Trustee and the Subordinated
Trustees are sometimes referred to collectively as the "Trustees." As used
under this caption, unless the context otherwise requires, "debt securities" in
lower case refers to all debt securities issued or issuable, as the case may
be, under the Indentures, and "Debt Securities" refers to the Debt Securities
covered by this Prospectus and any accompanying Prospectus Supplement. The
statements under this caption are brief summaries of certain provisions
contained in the Indentures, do not purport to be complete, and are qualified
in their entirety by reference to the Indentures, including the definitions
therein of certain terms, copies of which are filed or incorporated by
reference as exhibits to the Registration Statement of which this Prospectus is
a part.
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<PAGE>
GENERAL
Each Indenture provides for the issuance of debt securities in one or more
series, and does not limit the principal amount of debt securities that may be
issued thereunder.
Reference is made to the accompanying Prospectus Supplement for the following
terms of the Debt Securities being offered hereby: (1) the specific title of
the Debt Securities; (2) whether the Debt Securities are Senior Debt Securities
or Subordinated Debt Securities; (3) the aggregate principal amount of the Debt
Securities; (4) the percentage of their principal amount at which the Debt
Securities will be issued; (5) the date on which the Debt Securities will
mature; (6) whether the Debt Securities will bear interest and, if so, the rate
or rates per annum or the method for determining the rate or rates at which the
Debt Securities will bear interest; (7) any index, security, group of
securities or formula used to determine the amount of principal of, premium,
if any, and interest, if any, on the Debt Securities (8) the time or times at
which any such principal, premium, if any, or interest will be payable; (9) any
provisions relating to optional or mandatory redemption of the Debt Securities;
(10) the denominations in which the Debt Securities are authorized to be
issued; (11) the place or places at which, the period or periods within which,
the price or prices at which and the terms and conditions, if any, upon which
the Debt Securities may be exchanged for or converted into other securities of
the Corporation, including Series Preferred Stock and Common Stock; (12) the
currency or units of two or more currencies in which the Debt Securities are
denominated, if other than U.S. dollars, and the currency or units of two or
more currencies in which interest is payable if other than the currency in
which the Debt Securities are denominated; (13) the place or places at which
the Corporation will make payments of principal, premium, if any, and interest,
if any, and the method of such payment; (14) whether the Debt Securities will
be issued, in whole or in part, in the form of one or more Global Debt
Securities (as hereinafter defined) and, in such case, the depository for such
Global Debt Security or Global Debt Securities; (15) the person to whom any
Debt Security of such series will be payable, if other than the person in whose
name that Debt Security (or one or more Predecessor Securities (as defined in
the applicable Indenture)) is registered at the close of business on the
Regular Record Date (as defined in the applicable Indenture) for such interest;
(16) the extent to which, or the manner in which, any interest payable on a
Global Debt Security on an Interest Payment Date (as defined in the applicable
Indenture) will be paid; (17) any additional covenants and Events of Default
and the remedies with respect thereto not set forth in the respective
Indenture; and (18) any other specific terms of the Debt Securities.
SUBORDINATION
Unless otherwise indicated in the applicable Prospectus Supplement, the
Subordinated Debt Securities will be subject to the subordination provisions
set forth in the applicable Subordinated Indenture and described below.
The payment of the principal of, premium, if any, and interest on the
Subordinated Debt Securities will, to the extent set forth in the applicable
Subordinated Indenture, be subordinated in right of payment to the prior
payment in full of all Senior Indebtedness (as defined below). In certain
events of insolvency, the payment of the principal of, premium, if any, and
interest on the Subordinated Debt Securities will, to the extent set forth in
the applicable Subordinated Indenture, also be effectively subordinated in
right of payment to the prior payment in full of all Other Financial
Obligations (as defined below). Upon any payment or distribution of assets to
creditors upon any liquidation, dissolution, winding up, reorganization,
assignment for the benefit of creditors, marshalling of assets or any
bankruptcy, insolvency or similar proceedings of the Corporation, the holders
of all Senior Indebtedness will first be entitled to receive payment in full of
all amounts due or to become due thereon before the holders of the Subordinated
Debt Securities will be entitled to receive any payment in respect of the
principal of, premium, if any, or interest on the Subordinated Debt Securities.
If upon any such payment or distribution of assets to creditors, there remain,
after giving effect to such subordination provisions in favor of the holders of
Senior Indebtedness, any amounts of cash, property or securities available for
payment or distribution in respect of Subordinated Debt Securities (as defined
in
5
<PAGE>
each Subordinated Indenture, "Excess Proceeds") and if, at such time, any
Entitled Persons (as defined below) in respect of Other Financial Obligations
have not received payment in full of all amounts due or to become due on or in
respect of such Other Financial Obligations, then such Excess Proceeds will
first be applied to pay or provide for the payment in full of such Other
Financial Obligations before any payment or distribution may be made in respect
of the Subordinated Debt Securities. In the event of the acceleration of the
maturity of any Subordinated Debt Securities, the holders of all Senior
Indebtedness will first be entitled to receive payment in full of all amounts
due thereon before the holders of the Subordinated Debt Securities will be
entitled to receive any payment upon the principal of, premium, if any, or
interest on the Subordinated Debt Securities. No payments on account of
principal of, premium, if any, or interest on the Subordinated Debt Securities
or on account of the purchase or acquisition of Subordinated Debt Securities
may be made if there has occurred and is continuing a default in any payment
with respect to Senior Indebtedness, or if any judicial proceeding is pending
with respect to any such default.
By reason of such subordination in favor of the holders of Senior
Indebtedness, in the event of insolvency, creditors of the Corporation who hold
obligations other than Senior Indebtedness and the Subordinated Debt Securities
may recover less in respect of such obligations, ratably, than holders of
Senior Indebtedness and may recover more in respect of such obligations,
ratably, than the holders of the Subordinated Debt Securities. By reason of the
obligation of the holders of the Subordinated Debt Securities to pay over any
Excess Proceeds to Entitled Persons in respect of Other Financial Obligations,
in the event of insolvency, holders of Existing Subordinated Indebtedness (as
defined in the applicable Indenture) that are not required to pay over Excess
Proceeds may recover less, ratably, than Entitled Persons in respect of Other
Financial Obligations and may recover more, ratably, than the holders of
Subordinated Debt Securities.
Senior Indebtedness is defined in each Subordinated Indenture as the
principal of, premium, if any, and interest (including interest accruing
subsequent to the commencement of any proceeding for the bankruptcy or
reorganization of the Corporation) on (a) all indebtedness of the Corporation
for money borrowed, whether outstanding on the date of execution of such
Subordinated Indenture or thereafter created, assumed or incurred, except such
indebtedness as is by its terms expressly stated to be not superior in right of
payment to the Subordinated Debt Securities or to rank pari passu with the
Subordinated Debt Securities or is identified in a Board Resolution or any
indenture supplemental to such Subordinated Indenture as not superior in right
of payment or to rank pari passu with the Subordinated Debt Securities and (b)
any deferrals, renewals or extensions of any such indebtedness for money
borrowed. Senior Indebtedness does not, however, include any obligations on
account of Existing Subordinated Indebtedness. The term "indebtedness for money
borrowed," when used with respect to the Corporation, is defined to mean any
obligation of, or any obligation guaranteed by, the Corporation for the
repayment of borrowed money, whether or not evidenced by bonds, debentures,
notes or other written instruments, and any deferred obligation for the payment
of the purchase price of property or assets.
"Existing Subordinated Indebtedness" means the Corporation's 8 1/4%
Subordinated Notes due July 2, 1996, 8% Subordinated Debentures due March 1997,
Zero Coupon Subordinated Yen Notes due 1997-2004, Subordinated Money Market
Capital Notes, Series A, B and C due June 1999, 9.20% Subordinated Capital
Notes due July 15, 1999, 9.50% Subordinated Debentures due June 14, 2000, 9.40%
Subordinated Debentures due March 1, 2001, 9.00% Subordinated Debentures due
August 1, 2001, 7.50% Subordinated Debentures due January 15, 2002, 8 1/8%
Subordinated Notes due 2002, 8 1/8% Subordinated Debentures due May 15, 2002, 7
1/8% Subordinated Debentures due July 31, 2002, Subordinated Floating Rate
Notes due 2002, 7.25% Subordinated Debentures due January 15, 2003,
Subordinated Constant Maturity Treasury Floating Rate Debentures due 2003,
Subordinated LIBOR CMT Floating Rate Debentures due 2003, Subordinated Floating
Rate Notes due 2004, 8 1/4% Subordinated Notes due 2005, Subordinated Floating
Rate Notes due 2005, Subordinated Yen Loan due 2005, 7 1/8% Subordinated Notes
due March 15, 2006, 6% Subordinated Notes due October 2008, 7 3/8% Subordinated
Notes due 2008, 7 1/8% Subordinated Notes due 2010, 7 1/2% Subordinated Notes
due 2010, 7 1/2% Subordinated Notes due November 15, 2015, 6 1/8% Convertible
Capital Securities due June 2033 and 6.00% Convertible Capital Securities due
August 2033 and such other indebtedness as may be specified in the Prospectus
Supplement.
6
<PAGE>
"Other Financial Obligations" means all obligations of the Corporation to
make payment pursuant to the terms of financial instruments, such as (i)
securities contracts and foreign currency exchange contracts, (ii) derivative
instruments, such as swap agreements (including interest rate and foreign
exchange rate swap agreements), cap agreements, floor agreements, collar
agreements, interest rate agreements, foreign exchange rate agreements,
options, commodity futures contracts, commodity option contracts, and (iii) in
the case of both (i) and (ii) above, similar financial instruments, other than
(A) obligations on account of Senior Indebtedness and (B) obligations on
account of indebtedness for money borrowed ranking pari passu with or
subordinate to the Subordinated Debt Securities. "Entitled Persons" means any
person who is entitled to payment pursuant to the terms of Other Financial
Obligations.
The Corporation's obligations under the Subordinated Debt Securities will
rank pari passu in right of payment with each other and with the Existing
Subordinated Indebtedness, subject to the obligations of the holders of
Subordinated Debt Securities to pay over any Excess Proceeds to Entitled
Persons in respect of Other Financial Obligations as provided in the applicable
Subordinated Indenture.
As of March 31, 1996, Senior Indebtedness and Other Financial Obligations of
the Corporation aggregated approximately $14 billion.
The Subordinated Indentures do not limit or prohibit the incurrence of
additional Senior Indebtedness and other Financial Obligations, which may
include indebtedness that is senior to the Subordinated Debt Securities but
subordinate to other obligations of the Corporation, including obligations of
the Corporation in respect of Other Financial Obligations.
FORM, EXCHANGE, REGISTRATION AND TRANSFER
Debt Securities of a series may be issuable in certificated or global form.
Debt Securities may be presented for registration of transfer (with the form of
transfer endorsed thereon duly executed) at the office of the Security
Registrar (as defined in the applicable Indenture), or at the office of any
transfer agent designated by the Corporation for such purpose with respect to
any series of Debt Securities and referred to in an applicable Prospectus
Supplement, without service charge and upon payment of any taxes and other
governmental charges as described in the relevant Indenture. Such transfer or
exchange will be effected upon the Security Registrar or such transfer agent,
as the case may be, being satisfied with the documents of title and identity of
the person making the request. The Corporation has appointed Bankers as
Security Registrar with respect to both the Senior Debt Securities and the
Subordinated Debt Securities. If a Prospectus Supplement refers to any transfer
agents (in addition to the Security Registrar) initially designated by the
Corporation with respect to any series of Debt Securities, the Corporation may
at any time rescind the designation of any such transfer agent or approve a
change in the location through which any such transfer agent acts, except that
the Corporation will be required to maintain a transfer agent in each Place of
Payment (as defined in the applicable Indenture) for such series. The
Corporation may at any time designate additional transfer agents with respect
to any series of Debt Securities.
In the event of any redemption in part, the Corporation shall not be required
to (i) issue, register the transfer of or exchange any Debt Security during a
period beginning at the opening of business 15 days before the day of mailing
of a notice of redemption of Debt Securities of like tenor and of the series of
which such Debt Security is a part, and ending at the close of business on the
earliest date in which the relevant notice of redemption is deemed to have been
given to all holders of Debt Securities of like tenor and of such series to be
redeemed and (ii) register the transfer of or exchange any Debt Security so
selected for redemption, in whole or in part, except the unredeemed portion of
any Debt Security being redeemed in part.
PAYMENT AND PAYING AGENTS
Unless otherwise indicated in an applicable Prospectus Supplement, payment of
principal of and premium, if any, on any Debt Security will be made only
against surrender to the Paying Agent (as defined
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<PAGE>
in the applicable Indenture) of such Debt Security. Unless otherwise indicated
in an applicable Prospectus Supplement, principal of, premium, if any, and
interest on Debt Securities will be payable, subject to any applicable laws and
regulations, at the office of such Paying Agent or Paying Agents as the
Corporation may designate from time to time, except that at the option of the
Corporation payment of any interest may be made by check mailed to the address
of the person entitled thereto as such address shall appear in the Security
Register (as defined in the applicable Indenture) with respect to such Debt
Securities. Unless otherwise indicated in an applicable Prospectus Supplement,
payment of interest on a Debt Security on any Interest Payment Date (as defined
in the applicable Indenture) will be made to the person in whose name such Debt
Security (or Predecessor Security) is registered at the close of business on
the Regular Record Date for such interest.
Unless otherwise indicated in an applicable Prospectus Supplement, the
Corporate Trust Office (as defined in the applicable Indenture) of Bankers in
The City of New York will be designated as the Corporation's sole Paying Agent
for payments with respect to Debt Securities of each series. Any Paying Agents
outside the United States and any other Paying Agents in the United States
initially designated by the Corporation for the Debt Securities of any series
will be named in the applicable Prospectus Supplement. The Corporation may at
any time designate additional Paying Agents or rescind the designation of any
Paying Agent or approve a change in the office through which any Paying Agent
acts, except that the Corporation will be required to maintain a Paying Agent
in each Place of Payment for each series of Debt Securities.
All moneys paid by the Corporation to a Paying Agent for the payment of the
principal of, premium, if any, or interest on any Debt Security of any series
and that remain unclaimed at the end of two years after such principal,
premium, if any, or interest shall have become due and payable will be repaid
to the Corporation and the holder of such Debt Security must thereafter look
only to the Corporation for payment of such amounts.
MODIFICATION OF THE INDENTURES
Each Indenture contains provisions that permit the Corporation and the
respective Trustee, with the consent of the holders of not less than 66 2/3% in
principal amount of the debt securities that are affected by the modification,
to modify the particular Indenture or any supplemental indenture or the rights
of the holders of the debt securities issued under such Indenture. However, no
such modification may, without the consent of the holder of each outstanding
debt security affected thereby, (a) change the stated maturity date of the
principal of, or any installment of principal of or interest, if any, on, any
such debt security, (b) reduce the principal amount of, or premium or rate of
interest, if any, on, any such debt security, (c) reduce the amount of
principal of an original issue discount debt security payable upon acceleration
of the maturity thereof, (d) change the place or currency of payment of
principal of, or premium or interest, if any, on, any such debt security, (e)
impair the right to institute suit for the enforcement of any payment on or
with respect to any such debt security, or (f) reduce the percentage in
principal amount of Outstanding debt securities (as defined in such Indenture)
of any series, the consent of whose holders is required for modification or
amendment of the Indenture or for waiver of compliance with certain provisions
of such Indenture or for waiver of certain defaults.
EVENTS OF DEFAULT
Senior Debt Securities
An Event of Default with respect to Senior Debt Securities of any series is
defined in the Senior Indenture as being: default for 30 days in payment of any
interest on Senior Debt Securities of such series; default in payment of
principal of, or premium, if any, on, Senior Debt Securities of such series;
default for 30 days in payment of any mandatory sinking fund payment required
by the Senior Debt Securities of such series; default for 90 days after notice
in performance of any other covenant in the Senior Debt Securities of such
series or in the Senior Indenture; or certain events of bankruptcy, insolvency
or reorganization. If an Event of Default
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with respect to Senior Debt Securities of any series occurs and is continuing,
the Senior Trustee or the holders of not less than 25% in principal amount of
the Senior Debt Securities of such series then outstanding may declare the
principal of all such Senior Debt Securities to be due and payable. The
Corporation is required to furnish to the Senior Trustee annually a statement
as to the performance by the Corporation of its obligations under the Senior
Indenture and as to any default in such performance. Under certain
circumstances, any declaration of acceleration with respect to Senior Debt
Securities of any series may be rescinded and past defaults (except, unless
theretofore cured, a default in the payment of principal of, premium, if any,
or interest on the Senior Debt Securities) may be waived by the holders of a
majority in aggregate principal amount of the Senior Debt Securities of such
series then outstanding. The Senior Trustee may withhold notice to the holders
of Senior Debt Securities of any series of any continuing default (except in
the payment of the principal of, or premium, if any, or interest on any Senior
Debt Securities of such series or in the payment of any sinking or purchase
fund installment) if the Senior Trustee considers it in the interest of holders
of such series of Senior Debt Securities to do so.
Subordinated Debt Securities
An Event of Default with respect to Subordinated Debt Securities of any
series is defined in each Subordinated Indenture as being certain events
involving a bankruptcy, insolvency or reorganization of the Corporation. If an
Event of Default with respect to Subordinated Debt Securities of any series
shall have occurred and be continuing, either the applicable Subordinated
Trustee or the holders of not less than 25% in aggregate principal amount of
the Subordinated Debt Securities of such series then outstanding may declare
the principal of such Subordinated Debt Securities to be due and payable
immediately. The Corporation is required to furnish to each Subordinated
Trustee annually a statement as to the performance by the Corporation of its
obligations under the applicable Subordinated Indenture and as to any default
in such performance. Under certain circumstances, any declaration of
acceleration with respect to Subordinated Debt Securities of any series may be
rescinded and past defaults (except, unless theretofore cured, a default in the
payment of principal of, premium, if any, or interest on such Subordinated Debt
Securities) may be waived by the holders of a majority in aggregate principal
amount of the Subordinated Debt Securities of such series then outstanding.
Each Subordinated Trustee may withhold notice to the holders of the
Subordinated Debt Securities of any series issued under the applicable
Indenture of any continuing default (except in the payment of the principal of,
or premium, if any, or interest on any Subordinated Debt Securities of such
series or in the payment of any sinking or purchase fund installment) if such
Subordinated Trustee considers it in the interest of the holders of such series
of Subordinated Debt Securities to do so.
The Subordinated Indentures do not provide for any right of acceleration of
the payment of the principal of a series of Subordinated Debt Securities upon a
default in the payment of principal, premium, if any, or interest or a default
in the performance of any covenant or agreement in the Subordinated Debt
Securities of the particular series or in the Subordinated Indenture. In the
event of a default in the payment of interest, principal or premium, if any,
the holder of a Subordinated Debt Security (or the Subordinated Trustee on
behalf of the holders of all of the series of Subordinated Debt Securities
affected) may, subject to certain limitations and conditions, seek to enforce
payment of such interest, principal or premium, if any.
CONSOLIDATION, MERGER, SALE OR CONVEYANCE
The Corporation has covenanted in the Indentures that it will not merge or
consolidate with any other corporation or sell or convey all or substantially
all of its assets to any person, firm or corporation unless the Corporation is
the continuing corporation, or the successor corporation is a corporation
organized under the laws of the United States of America or a state thereof and
such corporation expressly assumes the obligations under any outstanding Debt
Securities and the respective Indentures and the Corporation or such successor
corporation is not, immediately after such merger, consolidation, sale or
conveyance, in default in the performance of any of the covenants or conditions
of the respective Indentures. The Indentures do not contain any other covenant
that restricts the Corporation's ability to merge or consolidate with any other
corporation, sell or convey all or substantially all of its assets to any
persons, firm or corporation or otherwise engage in
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restructuring transactions. Further, the Indentures do not contain any
provisions that would provide protection to holders of Debt Securities against
a sudden and dramatic decline in credit quality resulting from a takeover,
recapitalization or similar restructuring of the Corporation.
TITLE
The Corporation, the Trustees and any agent of the Corporation or the
relevant Trustee may treat the registered owner of any Debt Security as the
absolute owner thereof (whether or not such Debt Security shall be overdue and
notwithstanding any notice to the contrary) for the purpose of making payment
and for all other purposes.
REPLACEMENT OF DEBT SECURITIES
Any mutilated Debt Security will be replaced by the Corporation at the
expense of the holder upon surrender of such Debt Security to the Trustee. Debt
Securities that become destroyed, lost or stolen will be replaced by the
Corporation at the expense of the holder upon delivery to the relevant Trustee
of evidence of the destruction, loss or theft thereof satisfactory to the
Corporation and the relevant Trustee. In the case of a destroyed, lost or
stolen Debt Security, an indemnity satisfactory to the relevant Trustee and the
Corporation may be required at the expense of the holder of such Debt Security
before a replacement Debt Security will be issued.
GOVERNING LAW
The Indentures and the Debt Securities will be governed by, and construed in
accordance with, the laws of the State of New York.
INFORMATION CONCERNING THE TRUSTEES
Subject to the provisions of the relevant Indenture relating to its duties,
each Trustee will be under no obligation to exercise any of its rights or
powers under such Indenture at the request, order or direction of any of the
holders of Debt Securities issued thereunder, unless such holders shall have
offered to such Trustee reasonable indemnity. Subject to such provision for
indemnification, the holders of a majority in principal amount of the debt
securities then outstanding thereunder will have the right to direct the time,
method and place of conducting any proceeding for any remedy available to the
Trustee under the relevant Indenture, or exercising any trust or power
conferred on such Trustee.
Senior Trustee
Bankers serves as trustee under various indentures for The Chase Manhattan
Corporation, parent company of the Senior Trustee. The Senior Trustee also
serves as trustee under another indenture with the Corporation relating to
other issues of its debt securities. In addition, the Corporation and Bankers
have other relationships arising in the ordinary course of business with the
Senior Trustee.
First Subordinated Trustee
Bankers serves as trustee under an indenture for the First Subordinated
Trustee. In addition, the Corporation and Bankers have other relationships
arising in the ordinary course of business with the First Subordinated Trustee.
Second Subordinated Trustee
The Second Subordinated Trustee will be named in the Prospectus Supplement
relating to the first series of Subordinated Debt Securities issued under the
Second Subordinated Indenture.
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BOOK-ENTRY SECURITIES
The Offered Securities may be issued in the form of one or more global
certificates (collectively, with respect to each series or issue of Offered
Securities, the "Global Security") registered in the name of a depositary or a
nominee of a depositary. Unless otherwise specified in the applicable
Prospectus Supplement, the depositary will be The Depository Trust Company
("DTC"). The Corporation has been informed by DTC that its nominee will be Cede
& Co. ("Cede"). Accordingly, Cede is expected to be the initial registered
holder of the Offered Securities that are issued in global form. No person that
acquires an interest in such Offered Securities will be entitled to receive a
certificate representing such person's interest in such Offered Securities
except as set forth herein or in the accompanying Prospectus Supplement. Unless
and until definitive Offered Securities are issued under the limited
circumstances described herein, all references to actions by holders of Offered
Securities issued in global form shall refer to actions taken by DTC upon
instructions from its Participants (as defined below), and all references
herein to payments and notices to such holders shall refer to payments and
notices to DTC or Cede, as the registered holder of such Offered Securities.
DTC has informed the Corporation that it is a limited purpose trust company
organized under the New York Banking Law, a "banking organization" within the
meaning of the New York Banking Law, that it is a member of the Federal Reserve
System, a "clearing corporation" within the meaning of the New York Uniform
Commercial Code and a "clearing agency" registered pursuant to Section 17A of
the Exchange Act, and that it was created to hold securities for its
participating organizations ("Participants") and to facilitate the clearance
and settlement of securities transactions among Participants through electronic
book-entry, thereby eliminating the need for physical movement of certificates.
Participants include securities brokers and dealers, banks, trust companies and
clearing corporations, and may include certain other organizations. Indirect
access to the DTC system also is available to others such as banks, brokers,
dealers and trust companies that clear through or maintain a custodial
relationship with a Participant, either directly or indirectly ("Indirect
Participants").
Holders that are not Participants or Indirect Participants but that desire to
purchase, sell or otherwise transfer ownership of, or other interests in,
Offered Securities may do so only through Participants and Indirect
Participants. Under a book-entry format, holders may experience some delay in
their receipt of payments, as such payments will be forwarded by the agent
designated by the Corporation to Cede, as nominee for DTC. DTC will forward
such payments to its Participants, which thereafter will forward them to
Indirect Participants or holders. Holders will not be recognized by the
applicable Trustee or the Corporation as registered holders of the Offered
Securities entitled to the benefits of the applicable Indenture or the terms of
the Offered Securities. Holders that are not Participants will be permitted to
exercise their rights as such only indirectly through and subject to the
procedures of Participants and, if applicable, Indirect Participants.
Under the rules, regulations and procedures creating and affecting DTC and
its operations as currently in effect (the "Rules"), DTC will be required to
make book-entry transfers of Offered Securities among Participants and to
receive and transmit payments to Participants. Participants and Indirect
Participants with which holders have accounts with respect to the Offered
Securities similarly are required by the Rules to make book-entry transfers and
receive and transmit such payments on behalf of their respective holders.
Because DTC can act only on behalf of Participants, who in turn act only on
behalf of holders or Indirect Participants, and on behalf of certain banks,
trust companies and other persons approved by it, the ability of a holder to
pledge Offered Securities to persons or entities that do not participate in the
DTC system, or to otherwise act with respect to such Offered Securities, may be
limited due to the absence of physical certificates for such Offered
Securities.
DTC has advised the Corporation that DTC will take any action permitted to be
taken by a registered holder of any Offered Securities under the applicable
Indenture or the terms of the Offered Securities only at the direction of one
or more Participants to whose accounts with DTC such Offered Securities are
credited.
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A Global Security will be exchangeable for the relevant definitive Offered
Securities registered in the names of persons other than DTC or its nominee
only if (i) DTC notifies the Corporation that it is unwilling or unable to
continue as depository for such Global Security or if at any time DTC ceases to
be a clearing agency registered under the Exchange Act at a time when DTC is
required to be so registered in order to act as such depository, (ii) the
Corporation executes and delivers to the applicable Trustee an order complying
with the requirements of the applicable Indenture that such Global Security
shall be so exchangeable or (iii) in the case of Debt Securities, there has
occurred and is continuing a default in the payment of principal of, premium,
if any, or interest on, the Debt Securities or an Event of Default or an event
that, with the giving of notice or lapse of time, or both, would constitute an
Event of Default with respect to such Debt Securities. Any Global Security that
is exchangeable pursuant to the preceding sentence will be exchangeable for
Debt Securities or definitive Offered Securities registered in such names as
DTC directs.
Upon the occurrence of any event described in the immediately preceding
paragraph, DTC is generally required to notify all Participants of the
availability through DTC of definitive Offered Securities. Upon surrender by
DTC of the Global Security representing the Offered Securities and delivery of
instructions for re-registration, the Trustee or the applicable registrar, as
the case may be, will reissue the Offered Securities as definitive Debt
Securities, and thereafter such Trustee or the applicable registrar will
recognize the holders of such definitive Offered Securities as registered
holders of Offered Securities entitled to the benefits of the applicable
Indenture or the terms of the Offered Securities, as the case may be.
Except as described above, the Global Security may not be transferred except
as a whole by DTC to a nominee of DTC or by a nominee of DTC to DTC or another
nominee of DTC or to a successor depositary appointed by the Corporation.
Except as described above, DTC may not sell, assign, transfer or otherwise
convey any beneficial interest in a Global Security evidencing all or part of
the Offered Securities unless such beneficial interest is in an amount equal to
an authorized denomination for the Offered Securities.
UNITED STATES TAXATION
Certain special United States federal income tax considerations may be
applicable to the Debt Securities (including those issued at an original issue
discount), the Common Stock, the Series Preferred Stock and the Depository
Shares. If securities are issued at an original issue discount or such tax
considerations are material to investors, the applicable Prospectus Supplement
will describe the tax considerations and a tax opinion will be filed with the
Commission. Prospective purchasers of Debt Securities, Common Stock and Series
Preferred Stock are urged to consult their own tax advisors prior to any
acquisition of such Offered Securities.
FOREIGN CURRENCY RISKS
GENERAL
Debt Securities of a series may be denominated in such foreign currencies or
currency units as may be designated by the Corporation at the time of offering
(the "Foreign Currency Securities").
ADDITIONAL FACTORS WILL BE SET FORTH IN CONNECTION WITH A SPECIFIC FOREIGN
CURRENCY SECURITY IN THE APPLICABLE PROSPECTUS SUPPLEMENT.
Unless otherwise indicated in an applicable Prospectus Supplement, a Foreign
Currency Security will not be sold in, or to a resident of, the country of the
Specified Currency (as defined below) in which such Foreign Currency Security
is denominated. The information set forth below is by necessity incomplete and
prospective purchasers of Foreign Currency Securities should consult their own
financial and legal advisors with respect to any matters that may affect the
purchase or holding of a Foreign Currency Security or the receipt of payments
of principal of, premium, if any, and interest on a Foreign Currency Security
in a Specified Currency.
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EXCHANGE RATES AND EXCHANGE CONTROLS
An investment in Foreign Currency Securities entails significant risks that
are not associated with a similar investment in a security denominated in U.S.
dollars. Such risks include, without limitation, the possibility of significant
changes in the rate of exchange between the U.S. dollar and the currency or
currency unit designated by the Corporation at the time of offering (the
"Specified Currency") and the possibility of the imposition or modification of
foreign exchange controls by either the United States or foreign governments.
Such risks generally depend on economic and political events and the supply of
and demand for the relevant currencies, over which the Corporation has no
control. In recent years, rates of exchange between the U.S. dollar and certain
foreign currencies have been highly volatile and such volatility may be
expected in the future. Fluctuations in any particular exchange rate that have
occurred in the past are not necessarily indicative, however, of fluctuations
in the rate that may occur during the term of any Foreign Currency Security.
Depreciation of the Specified Currency applicable to a Foreign Currency
Security against the U.S. dollar would result in a decrease in the U.S. dollar-
equivalent yield of such Foreign Currency Security, in the U.S. dollar-
equivalent value of the principal repayable at maturity of such Foreign
Currency Security and, generally, in the U.S. dollar-equivalent market value of
such Foreign Currency Security.
Governments have imposed from time to time exchange controls and may in the
future impose or revise exchange controls at or prior to a Foreign Currency
Security's maturity. Even if there are no exchange controls in effect with
respect to a Specified Currency, it is possible that the Specified Currency for
any particular Foreign Currency Security would not be available at such Foreign
Currency Security's maturity due to other circumstances beyond the control of
the Corporation.
JUDGMENTS
If an action based on Foreign Currency Securities were commenced in a court
of the United States, it is likely that such court would grant judgment
relating to such Foreign Currency Securities only in U.S. dollars. It is not
clear, however, whether, in granting such judgment, the rate of conversion into
U.S. dollars would be determined with reference to the date of default, the
date on which judgment is rendered or some other date. Holders of Foreign
Currency Securities would bear the risk of exchange rate fluctuations between
the time the amount of the judgment is calculated and the time the applicable
Trustee converts U.S. dollars to the Specified Currency for payment of the
judgment.
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DESCRIPTION OF SERIES PREFERRED STOCK
The Corporation is authorized to issue up to 10,000,000 shares of series
preferred stock, without par value. All shares of Series Preferred Stock,
irrespective of series, constitute one and the same class. See "Description of
the Corporation's Capital Stock." The following description of the terms of the
Series Preferred Stock sets forth certain general terms and provisions of the
Series Preferred Stock to which any Prospectus Supplement may relate. Certain
terms of any series of Series Preferred Stock offered by any Prospectus
Supplement will be described in the Prospectus Supplement relating to such
series of Series Preferred Stock. If so indicated in the Prospectus Supplement,
the terms of any such series may differ from the terms set forth below.
The Board of Directors is authorized to establish and designate series and to
fix the number of shares and the relative rights, preferences and limitations
of the respective series of the Series Preferred Stock. The terms of a
particular series of Series Preferred Stock may differ, among other things, in
(1) the number of shares that constitute such series, (2) the dividend rate (or
the method of calculation) on the shares of such series, and whether such
dividends are cumulative, (3) whether or not the shares of the series shall be
redeemable and the terms thereof, (4) whether or not the shares of the series
shall be convertible into, or exchangeable for, Common Stock (as defined below)
or other Series Preferred Stock of the Corporation and the terms thereof, (5)
the amount per share payable on the shares of the series in case of
liquidation, dissolution or winding up of the Corporation, (6) the terms of
voting rights, if any, of shares of the series, and (7) the other rights and
privileges and any qualifications, limitations or restrictions of such rights
or privileges of such series. Unless otherwise specifically set forth in the
Prospectus Supplement relating to a series of Series Preferred Stock, all
shares of Series Preferred Stock shall be of equal rank, preference and
priority as to dividends; when the stated dividends on any series are not paid
in full, the shares of all series of the Series Preferred Stock are to share
ratably in any dividend payment that is made; and upon liquidation, dissolution
or winding up, if assets are insufficient to pay in full all Series Preferred
Stock, then such assets are to be distributed among the holders ratably.
As described under "Depositary Shares" below, the Corporation may, at its
option, elect to offer Depositary Shares evidenced by Depositary Receipts (as
defined below), each representing a fraction (to be specified in the Prospectus
Supplement relating to the particular series of Series Preferred Stock) of a
share of the particular series of Series Preferred Stock issued and deposited
with a depositary, in lieu of offering full shares of such series of the Series
Preferred Stock.
The description of certain provisions of the Series Preferred Stock set forth
below does not purport to be complete and is subject to and qualified in its
entirety by reference to the Restated Certificate of Incorporation, as amended,
of the Corporation (the "Certificate of Incorporation") and the Certificate of
Amendment of the Certificate of Incorporation that relates to a particular
series of Series Preferred Stock, which will be filed with the Commission at or
prior to the time of the sale of the related Series Preferred Stock.
DIVIDEND RIGHTS
The holders of the Series Preferred Stock shall be entitled to receive, but
only when, as and if declared by the Board of Directors out of funds legally
available for that purpose, cash dividends at the rates and on the dates set
forth in the Prospectus Supplement relating to a particular series of Series
Preferred Stock, and no more (each date of such payment, a "Dividend Payment
Date"). Such rate may be fixed or variable, as set forth in the applicable
Prospectus Supplement. Each such dividend will be payable to the holders of
record of the shares of such series as they appear on the stock books of the
Corporation (or, if applicable, the records of the Depositary referred to below
under "Depositary Shares") on such record dates as are fixed by the Board of
Directors of the Corporation or a duly authorized committee thereof. Unless
otherwise specified in the applicable Prospectus Supplement, dividends payable
on any series of Series Preferred Stock for any
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period less than a full quarter will be computed on the basis of the actual
number of days elapsed over a 360-day year, and for a period of a full quarter
will be computed on the basis of a 360-day year consisting of twelve 30-day
months. Unless otherwise specified in the applicable Prospectus Supplement
relating to a series of Series Preferred Stock, such dividends shall be payable
from, and shall be cumulative from, the date of original issue of each share,
so that if in any dividend period (being the period between such Dividend
Payment Dates) dividends at the rate or rates as described in the Prospectus
Supplement relating to such series of Series Preferred Stock shall not have
been declared and paid or set apart for payment on all outstanding shares of
Series Preferred Stock for such dividend period and all preceding dividend
periods from and after the first day from which dividends are cumulative, then
the aggregate deficiency shall be declared and fully paid or set apart for
payment, but without interest, before any dividends shall be declared or paid
or set apart for payment on the Common Stock by the Corporation. The cutting-
off of dividends on Common Stock until the arrearages have been paid or
provided for, as outlined above, and such rights, if any, to vote for the
election of directors as may be set forth in the Prospectus Supplement relating
to a series of Series Preferred Stock, shall be the only consequences of the
failure to declare or pay dividends on the Series Preferred Stock. After
payment in full of all dividend arrearages on the Series Preferred Stock,
dividends on the Common Stock may be declared and paid out of funds legally
available for that purpose as the Board of Directors may determine.
Each series of the Series Preferred Stock will be entitled to dividends as
described in the Prospectus Supplement relating to such series. Different
series of the Series Preferred Stock may be entitled to dividends at different
dividend rates or based upon different methods of determination.
OPTIONAL REDEMPTION
The Corporation may, at its option, at any time or from time to time on not
less than 30 and not more than 60 days' notice, redeem one or more series of
the Series Preferred Stock, in whole or in part, at the redemption prices and
on the dates set forth in the Prospectus Supplement for the related series of
Series Preferred Stock.
Any optional redemption by the Corporation will be made only with the
approval of the appropriate bank regulatory authorities unless at the time of
redemption such approval is not required. At the date of this Prospectus, the
regulations of the Board of Governors of the Federal Reserve System (the
"Federal Reserve Board") require that the optional redemption of any series of
Series Preferred Stock, if such series is to be treated as tier 1 capital of
the Corporation, be subject to the prior approval of the Federal Reserve Board.
If less than all the outstanding shares of a series of Series Preferred Stock
are to be redeemed, the selection of the shares to be redeemed will be
determined by lot or pro rata as may be determined by the Board of Directors of
the Corporation or by any other method that the Board of Directors may
determine to be equitable, unless otherwise specified in the applicable
Prospectus Supplement. From and after the redemption date (unless default shall
be made by the Corporation in providing for the payment of the redemption
price), dividends shall cease to accrue on the shares of Series Preferred Stock
called for redemption and all rights of the holders thereof (except the right
to receive the redemption price) shall cease.
At the option of the Corporation, shares of Series Preferred Stock redeemed
or otherwise acquired by the Corporation may be restored to the status of
authorized but unissued shares of Series Preferred Stock.
CONVERSION OR EXCHANGE
The holders of shares of any series of Series Preferred Stock will have such
rights, if any, to convert such shares into, or to exchange such shares for,
cash, shares of Common Stock or shares of any other series of Series Preferred
Stock of the Corporation, as may be set forth in the Prospectus Supplement
relating to such series of Series Preferred Stock.
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VOTING RIGHTS
Except as indicated below or in the Prospectus Supplement relating to a
particular series of Series Preferred Stock, or except as expressly required by
applicable law, the holders of the Series Preferred Stock will not be entitled
to vote. Each share of any series of Series Preferred Stock will be generally
entitled to one vote on matters on which holders of such series are entitled to
vote, irrespective of such series' aggregate stated value, liquidation
preference or initial offering price. However, as more fully described under
"Depositary Shares" below, if the Corporation elects to issue Depositary Shares
representing a fraction of a share of a series of Series Preferred Stock, each
such Depositary Share will, in effect, be entitled to the same fraction of a
vote, rather than a full vote, per Depositary Share.
Unless otherwise specified in the applicable Prospectus Supplement, so long
as any shares of any series of Series Preferred Stock remain outstanding, the
Corporation shall not amend the Certificate of Incorporation so as to adversely
affect or subordinate the rights of the Series Preferred Stock without the
affirmative vote or consent of the holders of at least a majority of the
outstanding shares of Series Preferred Stock. However, unless otherwise
specified in the applicable Prospectus Supplement, if any such adverse
alteration affects the rights of only a single series of Series Preferred
Stock, then the alteration may be effected only with the vote or consent of at
least a majority of the outstanding shares of such series of Series Preferred
Stock. An increase in the authorized amount of the Series Preferred Stock
and/or the creation and issuance of other series of Series Preferred Stock or
serial preferred stock in accordance with the Certificate of Incorporation will
not be, or be deemed to be, an adverse alteration.
The foregoing voting provisions will not apply if, in connection with the
matters specified, provision is made for the redemption or retirement of all
outstanding Series Preferred Stock of each affected series.
Under regulations adopted by the Federal Reserve Board, if the holders of any
series of Series Preferred Stock become entitled to vote for the election of
directors because dividends on such series are in arrears, such series may then
be deemed a "class of voting securities," and a holder of 25% or more of such
series (or a holder of 5% or more if it otherwise exercises a "controlling
influence" over the Corporation) may then be subject to regulation as a bank
holding company in accordance with the Bank Holding Company Act of 1956, as
amended (the "BHC Act"). In addition, at such time (i) any bank holding company
may be required to obtain the approval of the Federal Reserve Board under the
BHC Act, and any foreign bank, and any company that controls a foreign bank,
that has certain types of U.S. banking operations may be required to obtain the
approval of the Federal Reserve Board under the International Banking Act of
1978, as amended, to acquire or retain 5% or more of any series of Series
Preferred Stock and (ii) any person other than a bank holding company may be
required to obtain the approval of the Federal Reserve Board under the Change
in Bank Control Act to acquire 10% or more of such series of Series Preferred
Stock.
LIQUIDATION RIGHTS
Upon any liquidation, dissolution or winding up of the Corporation, whether
voluntary or involuntary, the holders of the Series Preferred Stock will have
preference and priority over the Common Stock for payment out of the assets of
the Corporation or proceeds thereof, whether from capital or surplus, of such
amounts as are set forth in the Prospectus Supplement relating to such series
of Series Preferred Stock and, after such payment, the holders of such series
of Series Preferred Stock will be entitled to no other payments. If, in such
case, the assets of the Corporation or proceeds thereof are insufficient to
make the full liquidating payment on such series of Series Preferred Stock and
liquidating payments on any other outstanding Series Preferred Stock (including
accrued and unpaid dividends, if any), then such assets and proceeds will be
distributed among the holders of such series of Series Preferred Stock and any
other outstanding series of Series Preferred Stock, ratably in accordance with
the respective amounts that would be payable on all Series Preferred Stock
(including accrued and unpaid dividends, if any) if all such liquidating
amounts payable were paid in full. A consolidation or merger of the Corporation
with or into any other corporation or corporations or a sale, whether for cash,
shares of stock, securities or properties, of all or substantially all or any
part of
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the assets of the Corporation will not be deemed or construed to be a
liquidation, dissolution or winding up of the Corporation.
MISCELLANEOUS
Harris Trust Company of New York will serve as transfer agent, dividend
disbursing agent and registrar for the Series Preferred Stock issued in
connection with this Prospectus. The holders of Series Preferred Stock,
including any Series Preferred Stock issued in connection with this Prospectus,
will not have any preemptive rights to purchase or subscribe for any shares of
any class or other securities of any type of the Corporation. When issued, the
Series Preferred Stock will be fully paid and nonassessable. The Certificate of
Amendment of the Certificate of Incorporation setting forth the provisions of
each series of Series Preferred Stock will become effective after the date of
this Prospectus but on or before issuance of the related series of Series
Preferred Stock.
DEPOSITARY SHARES
GENERAL
The Corporation may, at its option, elect to offer fractional shares of
Series Preferred Stock, rather than full shares of Series Preferred Stock. In
the event such option is exercised, the Corporation will issue to the public
receipts for Depositary Shares, each of which will represent a fraction (to be
set forth in the Prospectus Supplement relating to a particular series of
Series Preferred Stock) of a share of a particular series of Series Preferred
Stock as described below.
The shares of any series of Series Preferred Stock represented by Depositary
Shares will be deposited under a Deposit Agreement (each, a "Deposit
Agreement") between the Corporation and a bank or trust company selected by the
Corporation, having its principal office in the United States (each, a
"Depositary"). Subject to the terms of the applicable Deposit Agreement, each
owner of a Depositary Share will be entitled, in proportion to the applicable
fraction of a share of Series Preferred Stock represented by such Depositary
Share, to all the rights and preferences of the Series Preferred Stock
represented thereby (including dividend, voting, redemption and liquidation
rights).
The Depositary Shares relating to any series of Series Preferred Stock will
be evidenced by Depositary Receipts issued pursuant to the applicable Deposit
Agreement. Depositary Receipts will be distributed to those persons purchasing
the fractional shares of the related series of Series Preferred Stock in
accordance with the terms of the offering described in the related Prospectus
Supplement. Copies of the forms of Deposit Agreement and Depositary Receipt are
filed as exhibits to the Registration Statement of which this Prospectus is a
part, and the following summary is qualified in its entirety by reference to
such exhibits.
Pending the preparation of definitive engraved or printed Depositary Receipts
relating to any series of Series Preferred Stock, the applicable Depositary
may, upon the written order of the Corporation, issue temporary Depositary
Receipts substantially identical to (and entitling the holders thereof to all
the rights pertaining to) such definitive Depositary Receipts but not in
definitive form. Definitive Depositary Receipts will be prepared thereafter
without unreasonable delay, and temporary Depositary Receipts will be
exchangeable for definitive Depositary Receipts at the Corporation's expense.
DIVIDENDS AND OTHER DISTRIBUTIONS
The Depositary will distribute all cash dividends or other cash distributions
received in respect of any series of Series Preferred Stock represented by
Depositary Shares to the record holders of such Depositary Shares in proportion
to the number of such Depositary Shares owned by such holders.
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In the event of a distribution other than in cash, the Depositary will
distribute property received by it to the record holders of Depositary Shares
entitled thereto, unless the Depositary determines that it is not feasible to
make such distribution, in which case the Depositary may, with the approval of
the Corporation, sell such property and distribute the net proceeds from such
sale to such holders.
WITHDRAWAL OF STOCK
Upon surrender of Depositary Receipts at the corporate trust office of the
Depositary (unless the related Depositary Shares have previously been called
for redemption), the holder of the Depositary Shares evidenced thereby will be
entitled to delivery at such office to or upon such holder's order, of the
number of whole shares of the related series of Series Preferred Stock and any
money or other property represented by such Depositary Shares. Holders of
Depositary Shares will be entitled to receive whole shares of the related
series of Series Preferred Stock on the basis set forth in the related
Prospectus Supplement for such series of Series Preferred Stock, but holders of
such whole shares of such Series Preferred Stock will not thereafter be
entitled to receive Depositary Shares in exchange therefor. If the Depositary
Receipts delivered by the holder evidence a number of Depositary Shares in
excess of the number of Depositary Shares representing the number of whole
shares of the related series of Series Preferred Stock to be withdrawn, the
Depositary will deliver to such holder at the same time a new Depositary
Receipt evidencing such excess number of Depositary Shares.
REDEMPTION OF DEPOSITARY SHARES
If a series of Series Preferred Stock represented by Depositary Shares is
subject to redemption, the Depositary Shares will be redeemed from the proceeds
received by the Depositary upon the redemption, in whole or in part, of such
series of Series Preferred Stock held by the Depositary. The redemption price
per Depositary Share will be equal to the applicable fraction of the redemption
price per share payable with respect to such series of Series Preferred Stock.
Whenever the Corporation redeems shares of Series Preferred Stock held by the
Depositary, the Depositary will redeem as of the same redemption date the
number of Depositary Shares representing shares of the related series of Series
Preferred Stock so redeemed. If less than all the Depositary Shares are to be
redeemed, unless otherwise specified in the applicable Prospectus Supplement,
the Depositary Shares to be redeemed will be selected by lot or pro rata or by
any other method as may be determined by the Depositary to be equitable.
VOTING THE SERIES PREFERRED STOCK
Upon receipt of notice of any meeting at which the holders of the Series
Preferred Stock are entitled to vote, the Depositary will mail the information
contained in such notice of meeting to the record holders of the Depositary
Shares relating to such Series Preferred Stock. Each record holder of such
Depositary Shares on the record date (which will be the same date as the record
date for the Series Preferred Stock) will be entitled to instruct the
Depositary as to the exercise of the voting rights pertaining to the amount of
the Series Preferred Stock represented by such holder's Depositary Shares. The
Depositary will endeavor, insofar as practicable, to vote the amount of the
Series Preferred Stock represented by such Depositary Shares in accordance with
such instructions, and the Corporation will agree to take all action that may
be deemed necessary by the Depositary in order to enable the Depositary to do
so. The Depositary will abstain from voting shares of the Series Preferred
Stock to the extent that it does not receive specific instructions from the
holders of Depositary Shares representing such Series Preferred Stock.
AMENDMENT AND TERMINATION OF THE DEPOSIT AGREEMENT
The form of Depositary Receipt evidencing Depositary Shares and any provision
of the applicable Deposit Agreement may at any time be amended by agreement
between the Corporation and the Depositary. However, unless otherwise specified
in the applicable Prospectus Supplement, any amendment that materially and
adversely alters the rights of the holders of Depositary Shares issued under
any Deposit Agreement will not be effective unless such amendment has been
approved by the holders of at least a majority of the Depositary Shares then
outstanding under such Deposit Agreement. A Deposit Agreement may be terminated
by the Corporation or the Depositary only if (i) all outstanding Depositary
Shares under such
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Deposit Agreement have been redeemed or (ii) there has been a final
distribution in respect of the related series of Series Preferred Stock in
connection with any liquidation, dissolution or winding up of the Corporation
and such distribution has been distributed to the holders of Depositary
Receipts.
CHARGES OF DEPOSITARY
The Corporation will pay all transfer and other taxes and governmental
charges arising solely from the existence of the depositary arrangements. The
Corporation will also pay charges of the Depositary in connection with the
initial deposit of the related series of Series Preferred Stock, any redemption
of such Series Preferred Stock at the option of the Corporation, and any
withdrawals of Series Preferred Stock by the holders of Depositary Shares.
Holders of Depositary Receipts will pay transfer and other taxes and
governmental charges and such other charges as are expressly provided in the
applicable Deposit Agreement to be for their accounts.
RESIGNATION AND REMOVAL OF DEPOSITARY
A Depositary may resign at any time by delivering to the Corporation notice
of its election to do so, and the Corporation may at any time remove a
Depositary, and any such resignation or removal will take effect upon the
appointment of a successor Depositary and its acceptance of such appointment.
Such successor Depositary must be appointed within 60 days after delivery of
the notice of resignation or removal and must be a bank or trust company having
its principal office in the United States and having a combined capital and
surplus of at least $50,000,000.
MISCELLANEOUS
Each Depositary will forward all reports and communications from the
Corporation that are delivered to such Depositary as the holder of the
applicable series of Series Preferred Stock.
Neither a Depositary nor the Corporation will be liable if it is prevented or
delayed by law or any circumstance beyond its control in performing its
obligations under the applicable Deposit Agreement. The obligations of the
Corporation and the Depositary under each Deposit Agreement will be limited to
performance in good faith of their duties thereunder and they will not be
obligated to prosecute or defend any legal proceeding in respect of any
Depositary Shares or Series Preferred Stock unless satisfactory indemnity is
furnished. They may rely on written advice of counsel or accountants, or
information provided by persons presenting Series Preferred Stock for deposit,
holders of Depositary Receipts or other persons believed to be competent, and
on documents believed to be genuine.
DESCRIPTION OF THE CORPORATION'S CAPITAL STOCK
The Corporation is authorized to issue 300,000,000 shares of Common Stock,
par value $1.00 per share (the "Common Stock"), and 10,000,000 shares of the
Series Preferred Stock. Neither the Common Stock nor the Series Preferred Stock
has preemptive rights. At the Annual Meeting of the Corporation on April 17,
1990, shareholders voted in favor of an amendment to the Certificate of
Incorporation (the "Proposed Amendment") increasing the number of shares of
authorized preferred stock from 10,000,000 to 20,000,000 by creating a new
class of serial preferred stock, without par value, with 10,000,000 authorized
shares. The Proposed Amendment does not give the holders of serial preferred
stock preemptive rights. The following summary does not purport to be complete
and is subject in all respects to the applicable provisions of the Certificate
of Incorporation, the Proposed Amendment and the By-Laws of the Corporation.
COMMON STOCK
Subject to the rights of holders of preferred stock, holders of Common Stock
are entitled to receive dividends when, as and if declared by the Board of
Directors of the Corporation out of any funds legally available therefor, and
are entitled upon liquidation, dissolution or winding up, after claims of
creditors, to
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receive pro rata the net assets of the Corporation. The holders of the Common
Stock are entitled to one vote for each share held and are vested with all of
the voting power except as the Board of Directors shall have provided voting
rights with respect to any series of preferred stock described below.
Holders of shares of Common Stock have non-cumulative voting rights, which
means that the holders of more than 50% of the shares voting for the election
of directors can elect 100% of the directors if they choose to do so, and, in
such event, the holders of the remaining fewer than 50% of the shares voting
for the election of directors will not be able to elect any person or persons
to the Board of Directors. The Common Stock does not have any sinking fund,
conversion or redemption provisions.
Harris Trust Company of New York is the Transfer Agent and Registrar of the
Common Stock of the Corporation. The Common Stock is listed on the New York
Stock Exchange and The International Stock Exchange of the United Kingdom and
the Republic of Ireland Limited. At March 31, 1996, there were outstanding
79,401,404 shares of the Corporation's Common Stock.
PREFERRED STOCK
Series Preferred Stock
General. The Series Preferred Stock, of which 10,000,000 shares have been
authorized, upon issuance has preference over the Common Stock with respect to
the payment of dividends and the distribution of assets in the event of
liquidation, dissolution or winding up of the Corporation and such other
rights, preferences and limitations as may be fixed by the Board of Directors.
Dividend provisions, liquidation preferences, voting rights, if any, sinking
fund and redemption provisions, if any, and conversion and exchange provisions,
if any, with respect to each series of Series Preferred Stock also will be
fixed by the Board of Directors. The shares of Series Preferred Stock referred
to in this Prospectus, when issued and paid for, will be validly issued, fully
paid and non-assessable.
Preferred Share Purchase Rights. On February 16, 1988, the Board of Directors
of the Corporation declared a dividend distribution of one Preferred Share
Purchase Right (each, a "Right") for each share of Common Stock held, payable
February 26, 1988 to shareholders of record on that date. Rights also
automatically attach to each share of Common Stock issued after February 26,
1988. The Rights are issued pursuant to an agreement dated as of February 22,
1988 (the "Rights Agreement") between the Corporation and Harris Trust Company
of New York, as Rights Agent, as successor to Morgan Shareholder Services Trust
Company.
Each Right entitles the record holder to purchase from the Corporation a
1/100th interest in a share of the Corporation's Series C Junior Participating
Preferred Stock at an exercise price of $140, subject to certain adjustments.
The Rights will not be exercisable or transferable apart from the Common Stock
until the tenth day after either a public announcement that a person or group
has acquired beneficial ownership of 20% or more of the Common Stock or the
announcement or commencement of a tender offer for 20% or more of the Common
Stock. If the Corporation is acquired or 50% or more of its consolidated assets
or earning power are sold, each holder of a Right will have the right to
receive, upon exercise at the then current exercise price of the Right, that
number of shares of common stock of the acquiring company having a market value
of two times the exercise price of the Right. If any person becomes an
Acquiring Person (as defined in the Rights Agreement) (unless such person first
acquires 20% or more of the outstanding Common Stock by a purchase pursuant to
a tender offer for all of the Common Stock for cash, which purchase increases
such person's beneficial ownership to 80% or more of the outstanding Common
Stock), each holder of a Right other than Rights beneficially owned by the
Acquiring Person (which will be void) will have the right to receive upon
exercise that number of shares of Common Stock having a market value of two
times the exercise price of the Right. The Rights will expire on February 26,
1998, but may be redeemed for $0.01 per Right at any time before a person or
group acquires the beneficial ownership of 20% or more of the Common Stock.
Until a Right is exercised, the holder has no rights as a shareholder of the
Corporation.
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After the acquisition by a person or group of beneficial ownership of 20% or
more of the outstanding Common Stock and prior to the acquisition by such
person or group of 50% or more of the outstanding Common Stock, the Board of
Directors of the Corporation may exchange the Rights (other than Rights owned
by such person or group), in whole or in part, at an exchange ratio of one
share of Common Stock, or a 1/100th interest in a share of Series C Junior
Participating Preferred Stock (or a share of a class or series of the
Corporation's preferred stock having equivalent rights, preferences and
privileges), per Right (subject to adjustment).
If issued, each share of Series C Junior Participating Preferred Stock will
be entitled, subject to adjustment, to (i) a quarterly dividend of the greater
of $1 per share or 100 times the quarterly dividend declared on each share of
Common Stock, (ii) in the event of liquidation, dissolution or winding up, a
preferential liquidation payment of the greater of $100 per share or 100 times
the liquidation payment made per share of Common Stock, and (iii) 100 votes per
share voting together with the holders of the Corporation's Common Stock on all
matters.
Under certain conditions, the Rights will also be redeemed in connection with
an acquisition of all of the Corporation's Common Stock for cash in a
transaction approved by the Corporation's shareholders. Subject to certain
specified conditions, a special meeting of the Corporation's shareholders to
vote on such a transaction will be called upon the request of a potential
acquiror.
These statements are qualified in their entirety by reference to the Rights
Agreement, a copy of which was filed with the Commission.
8.55% Cumulative Preferred Stock, Series I. On March 1, 1995, the Corporation
issued 1,000,000 shares of its 8.55% Cumulative Preferred Stock, Series I ($100
Liquidation Preference) ("Series I Preferred Stock"). Dividends on the Series I
Preferred Stock are cumulative. If dividends payable on the Series I Preferred
Stock are in arrears in an amount equivalent to dividends for six full dividend
periods, the number of directors of the Corporation will be increased by two
and the holders of the outstanding Series I Preferred Stock, voting together as
a single class with holders of shares of any other Series Preferred Stock then
outstanding upon which like voting rights have been conferred and are then
exercisable, will be entitled to elect two additional directors until all
dividends in arrears have been declared and paid or set apart for payment in
full. In the event of liquidation, dissolution or winding up of the
Corporation, the holders of the Series I Preferred Stock will be entitled to
receive a distribution of $100 per share, plus, in each case, accrued and
unpaid dividends to the date of final distribution.
The Series I Preferred Stock is not redeemable prior to March 1, 1997. On or
after such date, the Series I Preferred Stock will be redeemable at the option
of the Corporation, in whole or in part, at a redemption price of $100 per
share, plus accrued and unpaid dividends thereon to the date fixed for
redemption.
Fixed/Adjustable Rate Cumulative Preferred Stock, Series J. On October 28,
1992, the Corporation issued 447,225 shares of the Corporation's
Fixed/Adjustable Rate Cumulative Preferred Stock, Series J ($100 Liquidation
Preference) (the "Series J Preferred Stock"). Dividends on the Series J
Preferred Stock are cumulative. If dividends payable on the Series J Preferred
Stock are in arrears in an amount equivalent to dividends for six full dividend
periods, the number of directors of the Corporation will be increased by two
and the holders of the outstanding Series J Preferred Stock, voting together as
a single class with holders of shares of any other Series Preferred Stock then
outstanding upon which like voting rights have been conferred and are then
exercisable, will be entitled to elect two additional directors until all
dividends in arrears have been declared and paid or set apart for payment in
full. In the event of liquidation, dissolution or winding up of the
Corporation, the holders of the Series J Preferred Stock are entitled to
receive a distribution of $100 per share, plus, in each case, accrued and
unpaid dividends to the date of final distribution.
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Prior to December 1, 1997, shares of Series J Preferred Stock are redeemable
at the option of the Corporation at a redemption price per share of $103.00 and
thereafter at $100 per share. The redemption price set forth above with respect
to Series J Preferred Stock will be increased, in each case, by the amount of
accrued and unpaid dividends thereon to the date fixed for redemption.
The dividend rate on the Series J Preferred Stock for each dividend period to
December 1, 1997 is 7 3/8% per annum. Thereafter, dividends on the Series J
Preferred Stock will be established quarterly at a rate per annum equal to the
sum of (i) the amount determined by applying the effective rate (as defined
below) in effect from time to time and (ii) the amount (not to exceed $0.50 per
share) by which the regular quarterly cash dividend per share, if any, declared
on the Corporation's Common Stock during the immediately preceding dividend
period exceeds the last regular quarterly cash dividend per share actually paid
by the Corporation on the Common Stock prior to September 1, 1997. The
"effective rate" for any dividend period will be equal to .25% over the highest
of the Treasury Bill Rate, the Ten Year Constant Maturity Rate and the Thirty
Year Constant Maturity Rate, each as defined in the Certificate of
Incorporation, determined for the dividend period. The effective rate for any
dividend period, however, will not be less than 7% per annum nor greater than
15% per annum. Under certain circumstances, the amount of dividends payable or
accrued in respect of shares of the Series J Preferred Stock will be adjusted
to take account of certain amendments to the Internal Revenue Code of 1986, as
amended. In no event will the dividends payable on the Series J Preferred Stock
exceed 17% per annum.
Auction Rate Cumulative Preferred Stock, Series K, L, M and N. On January 22,
1993, in connection with the issuance of an exchangeable preferred stock issued
by a wholly owned indirect subsidiary of the Corporation, the Corporation
issued and held in treasury its Auction Rate Cumulative Stock, Series K, L, M
and N (the "Auction Rate Preferred Stock"), each series having 625 shares and
each share having a liquidation preference of $100,000, plus accrued and unpaid
dividends, and contingent voting rights. The Auction Rate Preferred Stock is
being held for exchange as fully described in the Certificate of Incorporation.
Each of the four series is identical except that, when exchanged, the dividend
rates and dividend payment dates vary and separate auctions on different dates
are held for each series.
The shares of each of these series of Auction Rate Preferred Stock are
redeemable, as a whole or in part, except under certain conditions, at the
option of the Corporation, at a redemption price of $100,000 per share plus an
amount equal to accrued and unpaid dividends.
When exchanged for the exchangeable preferred stock, each series of the
Auction Rate Preferred Stock will pay a dividend for the applicable dividend
period (generally 49 days) at a rate that is determined by an auction conducted
on each such series of Auction Rate Preferred Stock on the business day
preceding the commencement of a subsequent dividend period. The rate for any
dividend period is subject to a maximum rate based upon the Three-Point ARP
Index, as defined in the Certificate of Incorporation, in effect on a
particular auction date, but in no event will such rate for any dividend period
exceed 24%.
7 5/8% Cumulative Preferred Stock, Series O. On June 2, 1993, the Corporation
issued $150 million of 7 5/8% Convertible Capital Securities due June 2033.
These debt securities are subordinated and can be redeemed in whole, but not in
part, on or after June 1, 1998 at par, plus accrued and unpaid interest to the
redemption date. The Corporation, at its option, may reset at any time the
interest rate of the 7 5/8% Convertible Capital Securities to a rate of 6 1/8%
per annum. The Corporation opted to reset the interest rate to 6 1/8% per
annum, effective March 1, 1995. Holders have the right, at any time prior to
redemption or maturity, to convert the debt securities into depositary shares,
at $25 per share, each representing a one-tenth interest in a share of the
Corporation's 7 5/8% Cumulative Preferred Stock, Series O (Liquidation
Preference $250 per share) (the "Series O Preferred Stock").
On March 1, 1996, approximately 5,903,000 depositary receipts had been issued
each evidencing a depositary share representing a one-tenth interest in a share
of the Series O Preferred Stock. The aggregate
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liquidation preference of the shares represented by such depositary shares on
such date was approximately $147,575,000.
Dividends on the Series O Preferred Stock are cumulative and payable
quarterly on each March 1, June 1, September 1 and December 1, commencing with
the first such date succeeding original issuance. If dividends payable on the
Series O Preferred Stock are in arrears in an amount equivalent to dividends
for six full dividend periods, the number of directors of the Corporation will
be increased by two and the holders of the outstanding Series O Preferred
Stock, voting together as a single class with holders of shares of any other
series of series preferred stock then outstanding upon which like voting
rights have been conferred and are then exercisable, will be entitled to elect
two additional directors until all dividends in arrears on the Series O
Preferred Stock have been declared and paid or set apart for payment in full.
In the event of any liquidation, dissolution or winding up of the Corporation,
the holders of the Series O Preferred Stock will be entitled to receive a
distribution of $250 per share plus, in each case, an amount equal to accrued
and unpaid dividends to the date of final distribution. Shares of the Series O
Preferred Stock are redeemable at the Corporation's option, in whole or in
part, at any time at a redemption price of $300 per share on or before June 1,
1998 and thereafter at $250 per share, plus, in each case, accrued and unpaid
dividends to the redemption date.
7.50% Cumulative Preferred Stock, Series P. On August 19, 1993, the
Corporation issued $100 million of 7.50% Convertible Capital Securities due
August 2033. These debt securities are subordinated and can be redeemed, in
whole but not in part, on or after August 15, 1998 at par, plus accrued and
unpaid interest to the redemption date. The Corporation, at its option, may
reset at any time the interest rate on the 7.50% Convertible Capital
Securities to a rate of 6.00% per annum. The Corporation opted to reset the
interest rate to 6.00% per annum, effective May 15, 1995. Holders have the
right, at any time prior to redemption or maturity, to convert the debt
securities into depositary shares, at $25 per share, each representing a one-
fortieth interest in a share of the Corporation's 7.50% Cumulative Preferred
Stock, Series P (Liquidation Preference $1,000 per share) (the "Series P
Preferred Stock").
On May 15, 1996, approximately 3,945,000 depositary receipts had been issued
each evidencing a depositary share representing a one-fortieth interest in a
share of the Series P Preferred Stock. The aggregate liquidation preference of
the shares represented by such depositary shares on such date was
approximately $98,625,000.
Dividends on the Series P Preferred Stock are cumulative and payable
quarterly on each February 15, May 15, August 15 and November 15, commencing
with the first such date succeeding original issuance. If dividends payable on
the Series P Preferred Stock are in arrears in an amount equivalent to
dividends for six full dividend periods, the number of directors of the
Corporation will be increased by two and the holders of the outstanding Series
P Preferred Stock, voting together as a single class with holders of shares of
any other series of series preferred stock then outstanding upon which like
voting rights have been conferred and are then exercisable, will be entitled
to elect two additional directors until all dividends in arrears on the Series
P Preferred Stock have been declared and paid or set apart for payment in
full. In the event of any liquidation, dissolution or winding up of the
Corporation, the holders of the Series P Preferred Stock will be entitled to
receive a distribution of $1,000 per share plus, in each case, an amount equal
to accrued and unpaid dividends to the date of final distribution. Shares of
Series P Preferred Stock are redeemable at the Corporation's option, in whole
or in part, at any time at a redemption price of $1,200 per share on or before
August 15, 1998 and thereafter at $1,000 per share, plus, in each case,
accrued and unpaid dividends to the redemption date.
Adjustable Rate Cumulative Preferred Stock, Series Q. On March 28, 1994, the
Corporation issued 80,000 shares of its Adjustable Rate Cumulative Preferred
Stock, Series Q ($2,500 liquidation preference) (the "Series Q Preferred
Stock"). The dividend rate on the Series Q Preferred Stock is equal to 85% of
the Effective Rate (as defined below) in effect from time to time, but in no
event less than 4 1/2% or more than 10 1/2% per annum. The "Effective Rate"
for the Series Q Preferred Stock for each quarterly dividend period is the
highest of the "Treasury Bill Rate," the "Ten Year Constant Maturity Rate" and
the "Thirty Year Constant Maturity Rate" determined in advance of such
dividend period. If dividends payable on the Series Q
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Preferred Stock are in arrears in an amount equivalent to dividends for six
full dividend periods, the number of directors of the Corporation will be
increased by two and the holders of the outstanding Series Q Preferred Stock,
voting together as a single class with holders of shares of any other series of
series preferred stock then outstanding upon which like voting rights have been
conferred and are then exercisable, will be entitled to elect two additional
directors until all dividends in arrears on the Series Q Preferred Stock have
been declared and paid or set apart for payment in full. In the event of any
liquidation, dissolution or winding up of the Corporation, the holders of the
Series Q Preferred Stock will be entitled to receive a distribution of $2,500
per share plus, in each case, an amount equal to accrued and unpaid dividends
to the date of final distribution. The Series Q Preferred Stock is redeemable
at the option of the Corporation, in whole or in part, at any time or from time
to time on or after March 1, 1999. The redemption price payable by the
Corporation in respect of any such redemption will be $2,500 per share plus
accrued and unpaid dividends to the redemption date.
Adjustable Rate Cumulative Preferred Stock, Series R. On August 22, 1994, the
Corporation issued 60,000 shares of its Adjustable Rate Cumulative Preferred
Stock, Series R ($2,500 liquidation preference) (the "Series R Preferred
Stock"). The dividend rate on the Series R Preferred Stock is equal to 84.5% of
the Effective Rate (as defined below) in effect from time to time, but in no
event less than 4 1/2% or more than 10 1/2% per annum. The "Effective Rate" for
the Series R Preferred Stock for each quarterly dividend period is the highest
of the "Treasury Bill Rate," the "Ten Year Constant Maturity Rate" and the
"Thirty Year Constant Maturity Rate" determined in advance of such dividend
period. If dividends payable on the Series R Preferred Stock are in arrears in
an amount equivalent to dividends for six full dividend periods, the number of
directors of the Corporation will be increased by two and the holders of the
outstanding Series R Preferred Stock, voting together as a single class with
holders of shares of any other series of series preferred stock then
outstanding upon which like voting rights have been conferred and are then
exercisable, will be entitled to elect two additional directors until all
dividends in arrears on the Series R Preferred Stock have been declared and
paid or set apart for payment in full. In the event of any liquidation,
dissolution or winding up of the Corporation, the holders of the Series R
Preferred Stock will be entitled to receive a distribution of $2,500 per share
plus, in each case, an amount equal to accrued and unpaid dividends to the date
of final distribution. The Series R Preferred Stock is redeemable at the option
of the Corporation, in whole or in part, at any time or from time to time on or
after March 1, 1999. The redemption price payable by the Corporation in respect
of any such redemption will be $2,500 per share plus accrued and unpaid
dividends to the redemption date.
7 3/4% Cumulative Preferred Stock, Series S. On June 30, 1995, the
Corporation issued 50,000 shares of its Adjustable Rate Cumulative Preferred
Stock, Series S ($2,500 liquidation preference) (the "Series S Preferred
Stock"). If dividends payable on the Series S Preferred Stock are in arrears in
an amount equivalent to dividends for six full dividend periods, the number of
directors of the Corporation will be increased by two and the holders of the
outstanding Series S Preferred Stock, voting together as a single class with
holders of shares of any other series of series preferred stock then
outstanding upon which like voting rights have been conferred and are then
exercisable, will be entitled to elect two additional directors until all
dividends in arrears on the Series S Preferred Stock have been declared and
paid or set apart for payment in full. In the event of any liquidation,
dissolution or winding up of the Corporation, the holders of the Series S
Preferred Stock will be entitled to receive a distribution of $2,500 per share
plus, in each case, an amount equal to accrued and unpaid dividends to the date
of final distribution. The Series S Preferred Stock is redeemable at the option
of the Corporation, in whole or in part, at any time or from time to time on or
after June 1, 2000. The redemption price payable by the Corporation in respect
of any such redemption will be $2,500 per share plus accrued and unpaid
dividends to the redemption date.
SERIAL PREFERRED STOCK
The Proposed Amendment relating to the serial preferred stock would authorize
10,000,000 shares, which shares of stock upon issuance would have preference
over the Common Stock with respect to the payment of dividends and the
distribution of assets in the event of liquidation, dissolution or winding up
of the Corporation and such other rights, preferences and limitations as may be
fixed by the Board of Directors. The serial preferred stock upon issuance would
rank on a parity with the Series Preferred Stock with respect
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to the payment of dividends and the distribution of assets in the event of
liquidation, dissolution or winding up of the Corporation. Dividend provisions,
liquidation preferences, voting rights, if any, sinking fund and redemption
provisions, if any, and conversion and exchange provisions, if any, would be
fixed by the Board of Directors. There are currently no outstanding shares of
serial preferred stock. The Board of Directors has determined not to cause the
Proposed Amendment to be filed at this time.
VALIDITY OF OFFERED SECURITIES
Unless otherwise specified in the applicable Prospectus Supplement, the
validity of the Offered Securities to which this Prospectus relates will be
passed upon for the Corporation by Gordon S. Calder, Jr., Esq., a Managing
Director and Counsel of Bankers, and for any underwriters or agents by White &
Case, New York, New York. White & Case performs services for the Corporation
from time to time. Mr. Calder has an interest in a number of shares equal to
less than .02% of the Corporation's outstanding Common Stock.
EXPERTS
The consolidated financial statements of the Corporation for the year ended
December 31, 1995, appearing in the Corporation's Annual Report on Form 10-K
for the year ended December 31, 1995, and incorporated by reference into this
Prospectus, have been audited by Ernst & Young LLP, independent auditors, as
set forth in their report thereon included therein and incorporated herein by
reference. Such consolidated financial statements are incorporated herein by
reference in reliance upon such report given upon the authority of such firm as
experts in auditing and accounting.
PLAN OF DISTRIBUTION
The Corporation may sell Offered Securities to one or more underwriters for
public offering and sale by them or may sell Offered Securities to investors
directly or through agents. Any underwriter or agent involved in the offer and
sale of the Offered Securities will be named in the applicable Prospectus
Supplement.
Underwriters may offer and sell the Offered Securities at a fixed price or
prices, which may be changed, or from time to time at market prices prevailing
at the time of sale, at prices related to such prevailing market prices or at
negotiated prices. The Corporation also may, from time to time, authorize firms
acting as the Corporation's agents to offer and sell the Offered Securities
upon the terms and conditions as shall be set forth in any Prospectus
Supplement. In connection with the sale of Offered Securities, underwriters may
be deemed to have received compensation from the Corporation in the form of
underwriting discounts or commissions and may also receive commissions from
purchasers of Offered Securities for whom they may act as agent. Underwriters
may sell Offered Securities to or through dealers, and such dealers may receive
compensation in the form of discounts, concessions or commissions from the
underwriters and/or commissions (which may be changed from time to time) from
the purchasers for whom they may act as agent.
Any underwriting compensation paid by the Corporation to underwriters or
agents in connection with the offering of Offered Securities, and any
discounts, concessions or commissions allowed by underwriters to participating
dealers, will be set forth in the applicable Prospectus Supplement.
Underwriters, dealers and agents participating in the distribution of the
Offered Securities may be deemed to be underwriters, and any discounts and
commissions received by them and any profit realized by them on resale of the
Offered Securities may be deemed to be underwriting discounts and commissions,
under the Securities Act. Underwriters, dealers and agents may be entitled,
under agreements with the Corporation, to indemnification against and
contribution toward certain civil liabilities, including liabilities under the
Securities Act, and to reimbursement by the Corporation for certain expenses.
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If so indicated in the applicable Prospectus Supplement, the Corporation will
authorize dealers acting as the Corporation's agents to solicit offers by
certain institutions to purchase Offered Securities from the Corporation at the
public offering price set forth in such Prospectus Supplement pursuant to
Delayed Delivery Contracts ("Contracts") providing for payment and delivery on
the date or dates stated in such Prospectus Supplement. Each Contract will be
for an amount not less than, and the aggregate principal amount of Offered
Securities sold pursuant to Contracts shall be not less nor more than, the
respective amounts stated in such Prospectus Supplement. Institutions with whom
Contracts, when authorized, may be made include commercial and savings banks,
insurance companies, pension funds, investment companies, educational and
charitable institutions and other institutions, but will in all cases be
subject to the approval of the Corporation. Contracts will not be subject to
any conditions except (i) the purchase by an institution of the Offered
Securities covered by its Contracts shall not at the time of delivery be
prohibited under the laws of any jurisdiction in the United States to which
such institution is subject, and (ii) if the Offered Securities are being sold
to underwriters, the Corporation shall have sold to such underwriters the total
principal amount of the Offered Securities less the principal amount thereof
covered by Contracts. Agents and underwriters will have no responsibility in
respect of the delivery or performance of Contracts.
Each series of Offered Securities, except Common Stock, will be a new issue
of securities with no established trading market. Any underwriters to whom
Offered Securities are sold by the Corporation for public offering and sale may
make a market in such Offered Securities, but such underwriters will not be
obligated to do so and may discontinue any market making at any time without
notice. No assurance can be given as to the liquidity of or the trading markets
for any Offered Securities.
The offer and sale of the Offered Securities will comply with the
requirements of Schedule E of the By-Laws of the National Association of
Securities Dealers, Inc. regarding distributing securities of an affiliate
("Schedule E"). Under Schedule E, BT Securities, which may act as an
underwriter for the Offered Securities and which is a wholly-owned subsidiary
of the Corporation, is deemed to be an affiliate of the Corporation.
Any market making activities of BT Securities with respect to the Offered
Securities will be conducted in compliance with the requirements of Schedule E.
Following the initial distribution of any Offered Securities, BT Securities and
other affiliates of the Corporation may offer and sell such Offered Securities
in the course of their business as broker-dealers. BT Securities and such other
affiliates may act as principals or agents in such transactions. This
Prospectus may be used by BT Securities and such other affiliates in connection
with such transactions. Such sales, if any, will be made at varying prices
related to prevailing market prices at the time of sale or otherwise. Neither
BT Securities nor such other affiliates are obligated to make a market in any
of the Offered Securities and may discontinue any market-making activities at
any time without notice.
Certain of the underwriters or agents and their associates may be customers
of, engage in transactions with, and perform services for, the Corporation in
the ordinary course of business.
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No dealer, salesperson or other person has been authorized to give any
information or to make any representations not contained in this Prospectus
Supplement or the Prospectus and, if given or made, such information or
representation must not be relied upon as having been authorized by the
Corporation or the Underwriters. This Prospectus Supplement and the Prospectus
do not constitute an offer to sell or a solicitation of an offer to buy any of
the securities offered hereby in any jurisdiction to any person to whom it is
unlawful to make such offer in such jurisdiction. Neither the delivery of this
Prospectus Supplement or the Prospectus nor any sale made hereunder shall,
under any circumstances, create any implication that the information herein is
correct as of any time subsequent to the date hereof or that there has been no
change in the affairs of the Corporation since such date.
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TABLE OF CONTENTS
PROSPECTUS SUPPLEMENT
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<S> <C>
Bankers Trust New York Corporation......................................... S-2
Selected Consolidated Financial Data and Other Information................. S-3
Certain Terms of the Offered Notes......................................... S-4
Experts.................................................................... S-5
Validity of Offered Notes.................................................. S-5
Underwriting............................................................... S-6
PROSPECTUS
Available Information...................................................... 2
Incorporation of Certain Documents
by Reference.............................................................. 2
Bankers Trust New York Corporation......................................... 3
Use of Proceeds............................................................ 4
Description of Debt Securities............................................. 4
Book-Entry Securities...................................................... 11
United States Taxation..................................................... 12
Foreign Currency Risks..................................................... 12
Description of Series Preferred Stock...................................... 14
Depositary Shares.......................................................... 17
Description of the Corporation's Capital Stock............................. 19
Validity of Offered Securities............................................. 25
Experts.................................................................... 25
Plan of Distribution....................................................... 25
</TABLE>
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$250,000,000
[LOGO] BANKERS TRUST
NEW YORK CORPORATION
6 5/8% NOTES
DUE JULY 30, 1999
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PROSPECTUS SUPPLEMENT
JULY 23, 1996
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UBS SECURITIES
BT SECURITIES CORPORATION
CHASE SECURITIES INC.
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