32 new offerings valued at almost $15 billion year to date
Nine New Structured Products Raise a Total of $2.86 Billion in June 2006
NEW YORK, July 7, 2006 – In the month ended June 31, 2006, nine new structured products listed on the NYSE raising a total of $2.86 Billion .
Alabama Power Company, a wholly owned subsidiary of The Southern Company (NYSE: SO), issued $150 million of Series JJ 6.375% Senior Notes due June 15, 2046. The Senior Notes began trading on the NYSE on June 30, 2006 , under the ticker symbol ABA . The Senior Notes bear interest from the day they are issued at a rate of 6.375% per year, payable quarterly. Issued in increments of $25, the Senior Notes are traded by Bear Wagner Specialists.
Alabama Power electricity supply and service to 1.2 million homes, businesses and industries in the southern two-thirds of Alabama . It is one of five U.S. utilities operated by Southern Company, the nation's largest producer of electricity.
Chesapeake Energy Corporation (NYSE: CHK) issued $575 million of 6.25% Mandatory Convertible Preferred Stock which began trading on the NYSE on June 30, 2006, under the ticker symbol CHK Pr E. Each share of the mandatory convertible preferred stocks will automatically convert on June 15, 2009 , into between 7.1715 and 8.06059 shares of Chesapeake Energy Corporation common stock. The conversion rate will depend on the average closing price of Chesapeake Energy Corporation common stock over the 20 trading day period ending on the third trading day prior to the conversion date. Dividends will be paid in cash and/or common stock quarterly and will accrue and cumulate from the date of issuance. The 6.25% Mandatory Convertible Preferred Stock is issued in $250 increments and is traded by LaBranche & Co.
Chesapeake Energy Corporation is an oil and natural gas exploration and production company, engaged in the acquisition, exploration and development of properties for the production of crude oil and natural gas from underground reservoirs, and the marketing of natural gas and oil for other working interest owners in properties it operates.
Pulte Homes (NYSE: PHM) issued $150 million of 7.375% Senior Notes due 2046, which began trading on the NYSE on June 16, 2006 , under the ticker symbol PHA. The Senior Notes are unsecured and unsubordinated obligations of Pulte Homes, and will bear interest at a rate of 7.375% per year, payable quarterly. The Senior Notes, issued in increments of $25, are traded by Van der Moolen Specialists, USA LLC.
Pulte Homes, Inc., through its subsidiaries, engages in the homebuilding and financial services businesses.
Sovereign Capital Trust V, a statutory trust established by Sovereign Bancorp (NYSE: SOV), issued $175 million of 7.75% Capital Securities. The Capital Securities began trading on the NYSE on June 13, 2006 , under the ticker symbol SOV Pr B. The only assets of the trust are Sovereign Bancorp’s Junior Subordinated Notes due May 22, 2036 . The Capital Securities, issued in increments of $25, will bear interest from the day they are issued at the annual rate of 7.75%, payable quarterly. The Capital Securities are traded by Spear, Leeds , & Kellogg Specialists LLC.
Sovereign Bancorp, Inc. serves as the holding company for Sovereign Bank, and is a financial institution with more than 650 community-banking offices, over 1,000 automated teller machines (ATMs) and about 10,000 team members with principal markets in the Northeastern United States .
Capital One Capital II, a statutory trust established by the Capital One Financial Corporation (NYSE: COF), issued $345 million of 7.5% Enhanced Trust Preferred Securities (Enhanced T RU PS), due June 15, 2066 . The Trust Preferred Securities began trading on the NYSE on June 12, 2006 , under the ticker symbol COF Pr B. The only assets of the trust are 7.50% Junior Subordinated Deferrable Interest Debt Securities due June 15, 2066 . The trust preferred securities bear interest from the day they are issued at the annual rate of 7.5%, payable quarterly. The Enhanced Trust Preferred Securities, issued in increments of $25, are traded by LaBranche & Co., LLC.
Capital One Financial Corporation is a diversified financial services company, which markets a variety of financial products and services through its banking and non-banking subsidiaries.
The first two iPathSMExchange Traded Notes (ETNs), issued by Barclays Bank PLC (NYSE: BCS), began trading on the NYSE on June 7, 2006 . iPathSMETNs are senior, unsecured, unsubordinated debt securities that are designed to provide investors access to the returns of various market benchmarks.
The iPathSMDow Jones-AIG Commodity Index Total ReturnSMETN due June 12, 2036 is linked to the Dow Jones-AIG Commodity Total Return IndexSMand reflects the returns that are potentially available through an unleveraged investment in the futures contracts on physical commodities comprising the index plus the rate of interest that could be earned on cash collateral invested in specified Treasury Bills. Barclays Bank PLC issued $500 million of iPath ETNs linked to the Dow Jones-AIG Commodity Index Total Return, in increments of $50. The ETNs trade under the symbol DJP, and are traded by SIG Index Specialists LLC.
The iPathSM GSCI® Total Return Index ETN due June 12, 2036 is linked to the GSCI® Total Return Index and provides exposure to the returns potentially available through an unleveraged investment in the contracts comprising the GSCI® plus the Treasury Bill rate of interest that could be earned on funds committed to the trading of the underlying contracts. The commodities represented in the GSCI® Total Return Index are production-weighted to reflect their relative significance to the world economy. Crude oil is currently the dominant commodity in this index. Barclays Bank PLC issued $500 million of iPathSMETNs linked to the GSCI® Total Return Index, in increments of $50. The ETNs trade under the symbol GSP, and are traded by LaBranche Structured Products LLC.
Barclays Bank PLC is a global financial services provider engaged in retail and commercial banking, credit cards, investment banking, wealth management and investment management services.
The Comcast Corporation (NASDAQ: CMCSA) issued $345 million of 7.00% Notes due 2055 which began trading on the NYSE on June 6, 2006 , under the ticker symbol CCT. The Notes are unsecured and unsubordinated obligations of the Comcast Corporation and bear interest at a rate of 7.00% per year, payable quarterly. The Notes, issued in increments of $25, are traded by Bank of America Specialists.
Comcast Corporation is a broadband cable provider in the United States which offers a wide variety of consumer entertainment and communication products and services.
NYSE “Beyond Equities” – Structured Products
Since 1988, the NYSE has supported the capital-raising needs of qualified companies by providing a market for both debt and equity structured products including capital securities, mandatory convertibles, repackaged securities, equity-linked and index-linked securities, and corporate debt securities traded on the Exchange floor. The Exchange’s Structured Products Group reported a healthy new-listings environment so far for 2006, with 32 new offerings valued at almost $15 billion.
See all Listed NYSE Structured Products
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