Business Context and Reporting Period
This Form 8-K is filed by STRATS SM TRUST FOR WAL-MART STORES, INC. SECURITIES, SERIES 2005-4, a synthetic fixed-income trust formed in 2003. The report covers events occurring on November 5, 2008.
Key Financial Metrics
The filing details a specific transaction involving the exchange of STRATS certificates for underlying debt securities. It does not provide standard operating financial metrics such as revenue, profit, cash flow, or margins, as the entity is a special purpose trust.
- Certificates Surrendered: 18,000 certificates with an aggregate stated amount of $450,000.
- Underlying Assets Received: Wal-Mart Stores, Inc. 7.550% Notes due February 15, 2030, with a principal balance of $450,000.
- Outstanding Certificates (Post-Transaction): 559,000 certificates representing $13,975,000 aggregate principal balance.
- Underlying Assets Held (Post-Transaction): $13,975,000 aggregate principal amount of Wal-Mart Stores, Inc. 7.550% Notes.
Material Changes
On November 5, 2008, Synthetic Fixed-Income Securities, Inc. exercised optional exchange provisions under Section 39 of the Series Supplement. This resulted in a reduction of outstanding certificates and a corresponding reduction in the underlying notes held by the Trust.
Guidance, Outlook, and Risks
The filing contains no management commentary, forward-looking guidance, or discussion of risks and contingencies. The transaction was executed strictly in accordance with the trust's governing documents.
Investor Verification Checklist
- Verify the current outstanding principal balance of $13,975,000 for Series 2005-4.
- Confirm the terms of the underlying Wal-Mart Stores, Inc. 7.550% Notes due 2030 held by the Trust.
- Review Section 39 of the Series Supplement to understand the mechanics of future optional exchanges.