New York, May 28 - Targets Trust XV issued $56 million preferred securities linked to the common stock of International Business Machines Corp., according to a filing with the Securities and Exchange Commission.
The securities, guaranteed by Salomon Smith Barney Holdings Inc., were issued via underwriter Salomon Smith Barney on May 23.
The issue is designed to a higher yield than the current dividend on IBM's stock, according to the SEC filing. Holders participate in the first 5% of any appreciation in the price of IBM stock in the period between the issue date and the first reset date and in any subsequent monthly period but have no downside protection.
At maturity, holders receive the return on IBM stock but with the gain in each monthly period capped at 5%. Months are measured up to June 23, 2002 and then the 23rd of each subsequent month.
| Issuer: | Targets Trust XV
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| Issue: | Targets (Targeted Growth Enhanced Terms Securities)
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| Amount: | $56 million (5.6 million securities)
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| Maturity: | May 15, 2005
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| Price: | Par of $10
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| Distribution: | 10%, payable quarterly beginning Aug. 15, 2002 (short first coupon)
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| Payout at maturity: | Return on IBM stock, with gains capped at 5% per month
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| Call: | Non-callable
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| Settlement: | May 29
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| Listing: | "TBM" on American Stock Exchange
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