First Trust Combined Series 387 offers Build America Bond units

By Toni Weeks

San Diego, Jan. 5 - First Trust Combined Series 387 is offering units of its Build America Bonds Portfolio, Series 49, according to an S-6 filed with the Securities and Exchange Commission.

The depositor is Wheaton, Ill.-based First Trust Portfolios LP.

The trust seeks to distribute income and preserve capital by investing in a fixed portfolio of investment-grade taxable municipal bonds, according to the filing. Under normal circumstances, at least 80% of the trust's portfolio will consist of bonds issued under the Build America Bond provision of the American Recovery and Reinvestment Act of 2009, but the trust may also invest in other taxable municipal bonds.

On the initial date of deposit, Jan. 5, $16,516,996 in contracts to purchase securities comprised the trust. The 17,350 units each have a public offering price of $995.14 and a net asset value of $951.99.

The estimated net annual interest income per unit is $54.04. The estimated current return is 5.43%, and the estimated long-term return is 5.02%. The weighted average maturity of the securities is 19.6 years.

The units each carry a maximum sales charge of 3.95%. Sales charge reductions of up to $21 per unit are available based on the amount of the investment.

The trust has a termination date of March 29, 2041.

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