Business Context and Reporting Period
This Form 8-K, dated April 28, 2006, reports a transaction involving Synthetic Fixed-Income Securities, Inc. ("SFSI") acting on behalf of the STRATS(SM) Trust For Allstate Corporation Securities, Series 2006-3. The filing details the establishment of a trust to issue floating rate certificates backed by underlying securities from The Allstate Corporation.
Key Financial Metrics
- Underlying Securities Transferred: $35,000,000 aggregate principal amount of 5.95% Notes due 2036 issued by The Allstate Corporation.
- Certificates Issued: 1,400,000 Floating Rate STRATS(SM) Certificates, Series 2006-3.
- Trustee: The Bank of New York.
- Financial Statements: Not applicable per Item 9.01(a).
- Pro Forma Information: Not applicable per Item 9.01(b).
Material Changes
The primary event reported is the transfer of the underlying Allstate notes to the Trust on April 28, 2006, concurrent with the issuance of the STRATS Certificates. This filing does not report changes in operating revenue, profit, or cash flow for an operating company, as the registrant is a special purpose vehicle for securitization.
Guidance, Outlook, and Risks
The filing does not provide management commentary, future guidance, or specific risk factors beyond the standard structure of the trust agreement. The transaction is governed by a Base Trust Agreement dated February 28, 2006, and a Series Supplement dated April 28, 2006. An ISDA Master Agreement, including a Credit Support Annex, was also executed on the reporting date.
Investor Verification Checklist
- Verify the terms of the 5.95% Notes due 2036 issued by The Allstate Corporation.
- Review the Series Supplement (Exhibit 4.1) for specific terms of the Floating Rate STRATS Certificates.
- Examine the ISDA Master Agreement (Exhibit 10.1) for credit support and confirmation details.
- Confirm the role and obligations of The Bank of New York as Trustee.