Class A CUSIP 22080F202*:
Class B CUSIP 22080FAA1*
Please forward this notice to all beneficial holders.
U.S. Bank Trust National Association serves as trustee (the "Trustee") for the above-referenced Trust (the "Trust") formed pursuant to the terms of the Base Trust Agreement dated as of September 19, 2006 as supplemented by the CorTS Supplement 2006-2, (the "Series Supplement") dated as of October 20, 2006 (collectively, the "Trust Agreement") by and between Structured Products Corporation (the "Depositor") and the Trustee. Capitalized terms used herein have the meanings set forth in the Trust Agreement. The assets of the Trust include the following securities:
$ 60,000,000 principal amount 7.125% Notes due December 1, 2096
CUSIP No. 459200AP6*
issued by International Business Machines Corporation
The Warrantholder has given notice to the Trustee to exercise all Call Warrants for the purchase of all of the Term Assets held by the Trust, and agrees to make payment equal to the sum of the principal amount of the Term Assets being purchased pursuant to the exercise of the Call Warrants plus accrued and unpaid interest to and including the Warrant Exercise Date, determined to be Monday, June 11, 2012 (the "Warrant Exercise Date" or "Redemption Date").
THE EXERCISE OF THE CALL WARRANTS IS CONDITIONAL UPON RECEIPT BY THE TRUSTEE OF THE WARRANT EXERCISE PURCHASE PRICE ON THE WARRANT EXERCISE DATE.THERE CAN BE NO ASSURANCE THAT THE CALL WARRANTS WILL IN FACT BE EXERCISED ON THE WARRANT EXERCISE DATE.
If the Trustee receives the Warrant Exercise Purchase Price by 11:00 a.m. (New York City time) on the Redemption Date, then (i) $2,400,000 Class A Certificates issued by the Trust will be redeemed in full on the Redemption Date at a price of $25.00 per Class A Certificate plus accrued interest of $0.044271 per Class A Certificate to the Redemption Date, and $0.208333 accrued interest plus the Warrant Class B Purchase Price of $117.060449 on the Class B Certificate to the Redemption Date.
Further, with respect to IBM's exchange offer announced May 21, 2012 related to the 7.125% Debentures due December 1, 2096, the Underlying Securities for the CorTS Callable Trust Certificates, CorTS Trust VI for IBM Debentures, Warrantholder has notified the Trustee that it does not consent to the exchange.
If the Certificates are redeemed, no interest will accrue on such Certificates after the Redemption Date. If the Trustee does not receive the Warrant Exercise Purchase Price, then (i) the Certificates issued by the Trust will not be redeemed and will continue to accrue distributions as if no exercise notice had been given and (ii) the Warrantholder may elect to deliver a conditional notice 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 shall not be held responsible for the selection or the use of the CUSIP number, nor is any representation made as to its correctness indicated in this notice. It is included solely for the convenience of the holders.