Business Context and Reporting Period
This Form 8-K is filed by STRATS(SM) Trust For Procter & Gamble Securities, Series 2006-1, a synthetic fixed-income trust formed on February 28, 2006. The report covers events occurring on September 5, 2006, involving the surrender of STRATS Certificates in exchange for underlying Procter & Gamble notes.
Key Financial Metrics
- Certificate Surrender: 149,000 STRATS Certificates with an aggregate stated amount of $3,725,000 were surrendered.
- Underlying Asset Distribution: Procter & Gamble 5.800% Notes due August 15, 2034, with a principal balance of $3,725,000 were distributed to the depositor.
- Remaining Trust Holdings: As of September 5, 2006, the Trust holds $29,275,000 in aggregate principal amount of Procter & Gamble 5.800% Notes.
- Outstanding Certificates: 1,171,000 Certificates representing $29,275,000 in aggregate principal balance remain outstanding.
Material Changes
The filing reports a reduction in the outstanding principal balance of the STRATS Certificates and the corresponding underlying Procter & Gamble notes held by the Trust. This change resulted from an optional exchange executed under Section 39 of the Series Supplement, reducing the total outstanding principal from the pre-exchange level to $29,275,000.
Guidance, Outlook, and Risks
The filing does not provide forward-looking guidance, management commentary on future performance, or specific risk factors beyond the standard operational mechanics of the optional exchange provision. The transaction was executed in accordance with the existing Series Supplement.
Investor Verification Checklist
- Verify the current outstanding principal balance of $29,275,000 for Series 2006-1.
- Confirm the remaining number of outstanding STRATS Certificates (1,171,000).
- Review the terms of Section 39 of the Series Supplement regarding optional exchange provisions.
- Check the status of the underlying Procter & Gamble 5.800% Notes due August 15, 2034.