Fixed Income Trust for Prudential to issue seven certificate series

By Toni Weeks

San Diego, April 24 - The Fixed Income Trust for Prudential Financial, Inc. Notes, Series 2012-1 plans to issue seven classes of certificates, including six classes of zero-coupon certificates and one class of callable step-up certificates, according to a 424B5 filing with the Securities and Exchange Commission.

The trust is a common law trust formed by an agreement between Bank of New York Mellon and Fixed Income Client Solutions LLC, the depositor.

The face amount of the certificates will equal an aggregate value of $166.25 million, but the certificates will be issued at a discount.

The offering will consist of the following:

• $45,000 of class A-2012 zero-coupon certificates, series 2012-1 due June1, 2012;

• $816,000 of class A-2013 zero-coupon certificates, series 2012-1 due June 1, 2013;

• $816,000 of class A-2014 zero-coupon certificates, series 2012-1 due June 1, 2014;

• $816,000 of class A-2015 zero-coupon certificates, series 2012-1 due June 1, 2015;

• $816,000 of class A-2016 zero-coupon certificates, series 2012-1 due June 1, 2016;

• $816,000 of class A-2017 zero-coupon certificates, series 2012-1 due June 1, 2017; and

• $12.5 million of class A-2037 callable step-up certificates, series 2012-1 due Dec. 1, 2037.

The certificates represent the right to separate interest, or interest and principal, components of the underlying securities after payment of trust expenses. The underlying securities consist of $12.5 million of 6.625% series D medium-term notes due Dec. 1, 2037 issued by Prudential Financial, Inc.

The class A-2037 certificates are convertible in June 2017, after which time they will accrue interest. They are callable in whole or in part if the call warrants on the underlying securities are exercised, which may occur after June 1, 2017. The payout at maturity in December 2037 will be par.

Zero-coupon certificate holders will receive a single distribution of the face amount of their certificates in June of the year corresponding to the class of their certificates.

The certificates will settle in May.

US Bancorp will be the underwriter.

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