TIERS CORPORATE BOND-BACKED CERTIFICATES TRUST IBM 1997-4
FINANCIAL STATEMENT
FOR THE YEAR ENDED JUNE 30, 1998
TOGETHER WITH AUDITORS' REPORT
TIERS CORPORATE BOND-BACKED CERTIFICATES TRUST IBM 1997-4
TABLE OF CONTENTS
DESCRIPTION PAGES
Independent Auditors' Report 3
Schedule of Cash Receipts and Disbursements 4
for the year ended June 30, 1998
Notes to Financial Statement 5 - 6
REPORT OF INDEPENDENT AUDITORS
The Trustee of TIERS Corporate Bond-Backed Certificates
Trust IBM 1997-4
We have audited the accompanying Schedule of Receipts and
Disbursements (the "Schedule") of TIERS Corporate Bond-Backed
Certificates Trust IBM 1997-4 for the year ended June 30, 1998. This
Schedule is the responsibility of TIERS Corporate Bond-Backed
Certificates Trust IBM 1997-4 Trustees. Our responsibility is to
express an opinion on this Schedule based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the Schedule is free of
material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the Schedule. An
audit also includes assessing the accounting principles used and
significant estimates made by the Trustees, as well as evaluating the
overall Schedule presentation. We believe that our audit provides a
reasonable basis for our opinion.
As described in Note 2, the financial statement presents receipts and
disbursements of the TIERS Corporate Bond-Backed Certificates Trust
IBM 1997-4 in accordance with the trust indenture and is not intended
to be a presentation of financial statements in accordance with
generally accepted accounting principles.
In our opinion, the Schedule referred to above presents fairly, in
all material respects, the receipts and disbursements of the TIERS
Corporate Bond-Backed Certificates Trust IBM 1997-4 for the year
ended June 30, 1998 on the basis of accounting as described in Note
2.
Aston Bell & Associates
January 15, 1999
3
TIERS Corporate Bond-Backed Certificates
Trust IBM 1997-4
Schedule of Receipts and
Disbursements
For the Year Ended June 30,
1998
RECEIPTS
Interest on $100,000,000 p.a. International
Business Machines Corporation
7.125% Debentures due December 1, 2096 $ 7,215,000
-------------
Total Cash Receipts $7,215,000
==========
DISBURSEMENTS
Interest paid on $74,054,000 p.a. TIERS
Corporate Bond-Backed Certificates, Series IBM 1997-4,
Amortizing Class $ 2,721,485
Interest paid on $73,212,984 p.a. TIERS
Corporate Bond-Backed Certificates,
Series IBM 1997-4, Amortizing Class 2,690,577
Principal paid on TIERS Corporate
Bond-Backed Certificates,
Series IBM 1997-4, Amortizing Class $ 1,712,938
-----------
Total Cash Disbursements $ 7,125,000
==========
The accompanying notes are an integral part of the financial statement
4
ASTON BELL & ASSOCIATES
TIERS CORPORATE BOND-BACKED CERTIFICATES TRUST IBM 1997-4
NOTES TO FINANCIAL STATEMENT
FOR THE YEAR ENDED JUNE 30, 1998
NOTE 1
TIERS Corporate Bond-Backed Certificates Trust IBM 1997-4 (the "Trust") was
formed pursuant to the Trust Agreement dated as of June 16, 1997 (the "Closing
Date"), between Structured Products Corp., as depositor, and First Trust of New
York, National Association, as trustee, as supplemented by the Series IBM 1997-4
Supplement dated as of June 16, 1997. The Trust Agreement was qualified as an
indenture under the Trust Indenture Act of 1939, as amended.
Securities of the Trust are Certificates, each of which represents a fractional
undivided beneficial interest in the Trust; these securities were issued
pursuant to the Trust Agreement and consisted of two classes: the ZTF Class
Certificates and the Amortizing Class Certificates. In addition, the Term Assets
are the sole assets of the Trust from which Certificateholders will receive any
distributions.
NOTE 2
The financial statement presents receipts and disbursements of the TIERS
Corporate Bond-Backed Certificates Trust IBM 1997-4 in accordance with the trust
indenture and is not intended to be a presentation of financial statements in
accordance with generally accepted accounting principles. Certain financial
statement items are defined in the trust indenture as follows:
Term Assets - The Term Assets consist of $100,000,000 aggregate principal amount
of 7 1/8%
International Business Machines Corporation Debentures due December 1, 2096,
having the characteristics described in a prospectus dated December 3, 1996 and
a supplement thereto dated December 3, 1996. The Term Assets were issued and
sold as part of an underwritten public offering of $850,000,000 aggregate
principal amount of such securities.
5
TIERS CORPORATE BOND-BACKED CERTIFICATES TRUST IBM 1997-4
NOTES TO FINANCIAL STATEMENT
FOR THE YEAR ENDED JUNE 30, 1998
NOTE 2 - CONTINUED
ZTF Class Certificates - The ZTF Class Certificates consist of $100,000,000
aggregate Certificate Principal Balance. Subject to the occurrence of a Maturity
Shortening Redemption or an Optional Redemption, no cash distributions will be
made on the ZTF Class Certificates. Instead, the ZTF Class Certificates
outstanding on June 1, 2017 will be terminated and deemed involuntarily
surrendered by the holders thereof in exchange for a principal amount of the
Term Assets underlying such ZTF Class Certificates equal to the aggregate
Certificate Principal Balance of such ZTF Class Certificates.
Amortizing Class Certificates - The Amortizing Class Certificates consist
of $74,054,000 aggregate initial Certificate Principal Balance. Distributions on
the Amortizing Class Certificates will consist of semiannual Fixed Payments
payable on each Distribution Date up to and including June 1, 2017.
6