These redemptions are really starting to irritate LB, who almost lost its cool when it noticed this morning that KTX had disappeared from two accounts. KTX was a trust certificate with a 8% coupon on a $25 par value. The underlying security was a 8% trust preferred originating from Xerox Capital Trust I, and guaranteed by XRX as provided in the prospectus. TP's are in effect junior bonds.
The redemption was made at $25.3676 per certificate, a small premium to the $25 par value, plus accrued interest. Notice of Full Conditional Call on the Term Assets: CorTS Trust for Xerox Capital Trust I
I owned 100 shares bought near par value. I owned 50 of the 100 shares in a taxable account:
The other 50 shares were held in the Roth IRA:
This redemption was by the issuer, rather than the owner of the call warrant. I did not notice it, but XRX recently sold 1 billion of unsecured senior notes and the proceeds were going to be used to redeem the TP. Xerox Closes on $1 Billion of Senior Unsecured Notes