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, 2006, regarding an optional exchange of STRATS Certificates for underlying Wal-Mart Stores, Inc. notes.
Key Financial Metrics
- Exchange Amount: $3,875,000 aggregate stated amount of STRATS Certificates surrendered.
- Certificate Count Surrendered: 155,000 STRATS Certificates.
- Underlying Asset Received: Wal-Mart Stores, Inc. 7.550% Notes due February 15, 2030, with a principal balance of $3,875,000.
- Outstanding Balance Post-Exchange: $19,325,000 aggregate principal amount of Wal-Mart Notes held by the Trust.
- Outstanding Certificates Post-Exchange: 773,000 Certificates representing $19,325,000 aggregate principal balance.
Material Changes
On September 5, 2006, the Trust executed an optional exchange under Section 39 of the Series Supplement. Synthetic Fixed-Income Securities, Inc. surrendered 155,000 Certificates to the Trust. In return, the Trust distributed the corresponding underlying Wal-Mart Stores, Inc. notes. This transaction reduced the outstanding principal balance of the STRATS Certificates from the pre-exchange level to $19,325,000.
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 STRATS Trust. The transaction was conducted in accordance with the optional exchange provisions of the Series Supplement dated October 17, 2005.
Investor Verification Checklist
- Verify the current outstanding principal balance of $19,325,000 for Series 2005-4.
- Confirm the terms of the underlying Wal-Mart Stores, Inc. 7.550% Notes due February 15, 2030.
- Review Section 39 of the Series Supplement to understand the optional exchange mechanics utilized.
- Check for any subsequent filings regarding further redemptions or exchanges of this series.