Exhibit 1.2
XXXXXXX LYNCH, PIERCE, XXXXXX & XXXXX
INCORPORATED
PREFERREDPLUS CLASS A 8.00% TRUST CERTIFICATES SERIES ALL-1
PREFERREDPLUS CLASS B 0.207% TRUST CERTIFICATES SERIES ALL-1
TERMS AGREEMENT
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December 17, 2001
To: Xxxxxxx Xxxxx Depositor, Inc.
World Xxxxxxxxx Xxxxxx
Xxxxx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Xxxxx X. Xxxxxxxxxxx
Ladies and Gentlemen:
We understand that Xxxxxxx Xxxxx Depositor, Inc., a Delaware
corporation (the "Company"), proposes to issue and sell 1,944,800 PreferredPLUS
Class A 8.00% Trust Certificates Series ALL-1 (the "Class A Certificates") with
a $25 Stated Amount per Class A Certificate and 1,944,800 PreferredPLUS Class B
0.207% Trust Certificates Series ALL-1 (the "Class B Certificates") with a
notional principal amount of $25 per Class B Certificate, (the Class A
Certificates and Class B Certificates collectively, the "Underwritten
Securities").
Subject to the terms and conditions set forth below and subject to the
terms of the Purchase Agreement which are incorporated by reference herein, we
offer to purchase the principal amount of Underwritten Securities at the
purchase price set forth below.
The Underwritten Securities shall have the following terms:
Title: PreferredPLUS Trust Certificates Series ALL-1, offered in two classes
(Class A Trust Certificates and Class B Trust Certificates)
Ratings: BBB from Standard & Poor's and A3 from Moody's
Amount: 1,944,800 Class A Trust Certificates
1,944,800 Class B Trust Certificates
Class A Trust Certificate Denominations: stated amount of $25 and integral
multiples thereof
Class B Trust Certificate Denominations: notional principal amount of $25 and
integral multiples thereof
Currency of payment: U.S. dollars
Distribution rate or formula: Holders of Class A Trust Certificates will be
entitled to distributions at 8.00% per annum through February 3, 2027, unless
the Class A Trust Certificates are redeemed or called prior to such date.
Holders of Class B Trust Certificates will be entitled to distributions at
0.207% per annum through February 3, 2027, unless the Class B Trust Certificates
are redeemed or called prior to such date.
Cut-off Date: December 20, 2001
Distribution payment date: February 15 and August 15, commencing February 15,
2002
Regular record dates: As long as the Underlying Securities are represented by
one or more global certificated securities, the record day will be the close of
business on the Business Day prior to the relevant distribution payment dates,
unless a different record date is established for the Underlying Securities. If
the Underlying Securities are no longer represented by one or more global
certificated securities, the distribution payment date will be at least one
Business Day prior to the relevant distribution payment dates.
Stated maturity date: February 3, 2027
Sinking fund requirements: None
Conversion provisions: None
Listing requirements: Class A Certificates listed on the New York Stock Exchange
Black-out provisions: None
Fixed or Variable Price Offering: Fixed Price Offering
Class A Trust Certificate purchase price: $25 per Class A Trust Certificate
Class B Trust Certificate purchase price: $0.475 per Class B Trust Certificate
Form: Book-entry Trust Certificates with The Depository Trust Company, except in
certain limited circumstances
Closing date and location: December 20, 2001, Shearman & Sterling, 000 Xxxxxxxxx
Xxxxxx, Xxx Xxxx, Xxx Xxxx
2
Please accept this offer no later than 10:00 A.M. (New York City time)
on December 17, 2001 by signing a copy of this Terms Agreement in the space set
forth below and returning the signed copy to us.
Very truly yours,
XXXXXXX LYNCH, PIERCE, XXXXXX & XXXXX
INCORPORATED
By /s/ Xxxxx X. Xxxxxxxxxxx
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Authorized Signatory
Accepted:
XXXXXXX XXXXX DEPOSITOR, INC.
By /s/ Xxxxx X. Xxxxxxxxxxx
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Name: Xxxxx X. Xxxxxxxxxxx
Title: President
