NEW YORK, NY--(Marketwire - August 9, 2010) - U.S. Bank Trust National Association, as Trustee, under the Standard Terms for Trust Agreements dated as of January 16, 2001, as supplemented by the Series Supplement, AT&T Note-Backed Series 2003-18, dated as of November 19, 2003 (the "Trust Agreement") in respect of the Corporate Backed Trust Certificates, AT&T Note-Backed Series 2003-18 Trust (the "Trust") with Lehman ABS Corporation, as depositor, received notices that certain Call Warrants Holders have exercised their rights to purchase $16,000,000 of the Underlying Securities of the Trust on August 12, 2010 (the "Redemption Date").
THE EXERCISE OF THE CALL WARRANTS IS CONDITIONAL UPON RECEIPT BY THE TRUSTEE OF THE WARRANT EXERCISE CALL PRICE WITH RESPECT TO SUCH EXERCISE ON THE REDEMPTION DATE. THERE CAN BE NO ASSURANCE THAT THE CALL WARRANTS WILL IN FACT BE EXERCISED ON THE REDEMPTION DATE.
If the Trustee receives the call price by 10:00 a.m. (New York City time) on the Call Date, then the Trustee will redeem (i) 640,000 of the Class A-1 Certificates (selected pro rata) on the Call Date at a price of $25 plus accrued interest of $0.38515625 per Certificate per Class A-1 Certificate and (ii) $16,000,000 notional amount of the Class A-2 Certificates (selected pro rata) on the Call Date at a price of $159.57470563 accrued interest per $1,000 stated notional amount Class A-2 Certificate. The Class A-2 Certificates are interest-only Certificates and will not receive payment of principal. No interest will accrue on the Certificates selected for redemption after the Call Date. After giving effect to the above redemption of Certificates and Call Warrants exercise, 960,000 of Class A-1 Certificates, $24,000,000 notional amount of Class A-2 Certificates, 960,000 Class A-1 Call Warrants and 240 Class A-2 Call Warrants will remain outstanding. If the Trustee does not receive the call price by 10:00 a.m. (New York City time) on the Call Date, then (i) the Certificates selected for redemption will remain outstanding and continue to accrue interest as if no exercise notice had been given and (ii) these and other Call Warrants holders may elect to deliver notices of exercise in the future.
This press release is being issued by U.S. Bank Trust National Association as trustee of the Trust. For more information about this conditional redemption, Holders with questions may contact Bondholder Services at (800) 934-6802.
U.S. Bank Trust National Association,
as Trustee
Contact Information:
Contact:
Bondholder Services
(800) 934-6802
100 Wall Street
Suite 1600
New York, NY 10005