First Trust Combined Series 394 offers Tax Exempt Municipal units

By Tali David

Minneapolis, Feb. 14 - First Trust Combined Series 394 is offering units of its Build America Bonds Portfolio, Series 50, 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 income exempt from federal and applicable state and local income tax and to preserve capital by investing in a portfolio of tax-exempt municipal bonds issued by or on behalf of certain states or United States territories that provide income that is exempt from federal and applicable state and local income tax.

On the Feb. 14 inception date, $18,923,922 in contracts to purchase securities comprised the portfolio. The 19,866 units have a public offering price $995.00 and have a net asset value of $952.58.

The estimated current return is 4.14% and the estimated long-term return is 3.52%. The estimated annual net interest income is $41.18 per unit.

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, according to the S-6.

The trust will have a mandatory termination date of July 14, 2042.

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