ACTION: Cypress Semiconductor Corporation (“CY”) has announced a distribution of SunPower Corp. (“SPWRB”) Common Shares. The distribution ratio is .2742 SPWRB Class B Common Shares per CY Common Share. The record date is September 17, 2008; the mail date is September 29, 2008. The New York Stock Exchange (“NYSE”) has set September 30, 2008 as the ex-distribution of the distribution. The NYSE has determined due-bills for the SPWRB distribution must accompany each CY Share delivered after September 17, 2008 in settlement of CY transactions made prior to the ex-date.
This corporate event will be coordinated with the Options Clearing Corporation.
CATEGORY: Stock Dividend
EQUITY SYMBOL: Cypress Semiconductor Corporation (“CY”)
ONECHICAGO SYMBOL: CY1C changes to CY2C; a new CY1C will be re-listed on Wednesday, October 1, 2008.
CME FUTURES SYMBOL: CY2 for the CY2C; CY9 for the re-listed CY1C
EFFECTIVE DATE: Tuesday, September 30, 2008
MULTIPLIER: 100 (e.g., 1.00 equals $100.00)
NEW DELIVERABLE PER CONTRACT: 1) 100 Cypress Semiconductor Corporation (“CY”)Common Shares
2) 27 SunPower Corp. (“SPWRB”) Class B Common Shares
3) Cash in lieu of .42 fractional SunPower Corp. (“SPWRB”) Common Shares
*The cash portion of the deliverable remains permanently fixed as part of the deliverable, and does not vary with price changes of securities also included in the deliverable.
APPLICABLE CONTRACT MONTHS: October, November, and December 2008; March 2009
SETTLEMENT PRICES AND POSITIONS: The underlying price for CY2C will be determined as follows:
CY2C = CY+ .27 (SPWRB) + Cash in lieu of fractional shares
Please note that the valuation would apply only to the CY2C 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 firm’s 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).
The details after the corporate event has been applied can be viewed in the Corporate Event Activity Report (ONE711).
If you have any questions regarding the information provided in the document, please call CME Clearing Risk Management hotline at (312) 648-3888.