Business Context and Reporting Period
This Form 8-K is filed by Synthetic Fixed-Income Securities, Inc. on behalf of the STRATS (SM) Trust for Wal-Mart Stores, Inc. Securities, Series 2005-4. The report covers events occurring on September 5, 2008. The Trust is a special purpose entity formed to issue synthetic fixed-income securities backed by Wal-Mart Stores, Inc. debt.
Key Financial Metrics and Transaction Details
The filing reports a specific transaction involving the exchange of STRATS Certificates for underlying debt securities. No revenue, profit, or cash flow metrics are applicable as this is a trust structure reporting a specific event.
- Certificates Surrendered: 56,000 STRATS Certificates, Series 2005-4.
- Aggregate Stated Amount Surrendered: $1,400,000.
- Underlying Asset Received: Wal-Mart Stores, Inc. 7.550% Notes due February 15, 2030.
- Principal Balance of Notes Received: $1,400,000.
- Outstanding Certificates Post-Transaction: 577,000 Certificates.
- Outstanding Certificate Principal Balance: $14,425,000.
- Underlying Assets Held by Trust Post-Transaction: $14,425,000 aggregate principal amount of Wal-Mart Stores, Inc. 7.550% Capital Securities due February 15, 2030.
Material Changes
The filing details an optional exchange executed under Section 39 of the Series Supplement. Synthetic Fixed-Income Securities, Inc. surrendered a portion of its holdings in the Trust, resulting in a reduction of outstanding certificates and a corresponding reduction in the underlying assets held by the Trust. The filing does not provide comparative data for prior periods to quantify percentage changes.
Guidance, Outlook, and Risks
The filing contains no management commentary, forward-looking guidance, or discussion of risks and contingencies beyond the mechanical description of the exchange event. The transaction was executed in accordance with the optional exchange provisions of the Series Supplement.
Investor Verification Checklist
- Verify the terms of the optional exchange provisions in Section 39 of the Series Supplement dated October 17, 2005.
- Confirm the current market value of the underlying Wal-Mart Stores, Inc. 7.550% Notes due 2030 relative to the certificate principal balance.
- Review the total outstanding principal balance of $14,425,000 to assess the remaining scale of the trust.
- Check for any subsequent filings regarding further surrenders or distributions from the Trust.