ACTION: Harris Corporation (“HRS”) has announced a distribution of Harris Stratex Networks, Inc. (“HSTX”) Common Shares. The distribution ratio is approximately .24 HSTX Common Shares per HRS Common Share. The record date is May 13, 2009; the mail date is May 27, 2009. The New York Stock Exchange (“NYSE”) has set May 11, 2009 as the ex-distribution of the distribution.
This action will be coordinated with the Options Clearing Corporation.
CATEGORY: Stock Distribution
EQUITY SYMBOL: Harris Corporation (“HRS”)
ONE CHICAGO SYMBOL: HRS1C will change to HRS2C
CME FUTURES SYMBOL: HRS for the re-listed HRS1C; HR8 for the HRS2C
MULTIPLIER: 100 (e.g., 1.00 equals $100.00)
EFFECTIVE DATE: Monday, May 11, 2009
NEW DELIVERABLE PER CONTRACT:
For the HRS2C:
1) 100 Harris Corporation (“HRS”) Common Shares
2) Approximately 24 Harris Stratex Networks, Inc. (“HSTX”) Common Shares
3) Cash in lieu of fractional HSTX shares, if any*
For the re-listed HRS1C:
100 Harris Corporation (“HRS”) common shares
*The cash portion of the deliverable remains permanently fixed as part of the option deliverable, and does not vary with price changes of securities also included in the deliverable.
APPLICABLE CONTRACT MONTHS: May, June, September, December 2009
SETTLEMENT PRICES AND POSITIONS: The underlying price for the HRS2C Futures contract deliverable, expressed in term of current market value, would be calculated as follows:
HRS2C = HRS + ~.24 (HSTX)
Please note that the valuation would apply only to the HRS2C deliverable in terms of current market value of the deliverable securities. The resulting price would not be equivalent to the daily settlement price of a futures contract month, whose determination would include cost of money carrying charges, adjustment for dividends, and other factors.
NOTES: The forecasted effect of the upcoming corporate event on each clearing firms’ positions can be viewed in infopac in the Corporate Event Initial Forecast Report (ONE712), the Corporate Event Final Forecast Report (ONE713), and the Corporate Event Forecast Audit Report (CPDBU710).
If you have any questions regarding the information provided in the document, please call CME Clearing risk management hotline at (312) 648-3888.