Commercial Paper Notes/Investors

Commercial paper consists of short-term, promissory notes issued primarily by corporations. Many companies use commercial paper to raise cash needed for working capital and other general corporate purposes, and many find it to be a lower-cost alternative to bank loans. Maturity is usually from 14 days to 270 days from the date of issue and is exempt from SEC registration if its maturity does not exceed 270 days.

Resale/Transfer

Some resales of commercial paper may be made only in compliance with Rule 144A to QIBs (within the meaning of Rule 144A under the Act). These types of securities are intended to be held until maturity. There may be no secondary market for these securities; should a secondary market become available, investors may receive less than the purchase price for liquidations executed in those markets.

Redemption

Commercial papers are not redeemable prior to maturity or if so, could be subject to a voluntary prepayment. Also, requests for full or partial redemption may be provided by the issuing company at their discretion.

Secured/Unsecured/Ratings

Some commercial paper may be unsecured or it may be secured by assets of the issuing company. For example eligible collateral can include: Municipal Bonds, Corporates, Medium Term Notes, U.S. Treasuries, Money Markets, and Agency Debentures. Commercial paper may or may not be rated by an independent agency. Commercial paper can be investment grade, non-investment grade, and/or not rated. Default may be higher for non-rated Commercial paper. Defaults or bankruptcy by the issuer can cause the investor to lose all or some of the investment.

Risks

These types of products are structured products and are subject to the possibility of default by the issuer. The financial condition and credit worthiness of the issuer are important considerations when assessing the ability of the issuer to meet its obligations according to the terms in the offering statement.

The Offering Statement Contains Important Details

Investments carry a certain degree of risk. Investors should consider the fees, risks, tax treatment, expenses, ratings and underlying credit information and should refer to the offering memorandum prior to investing.

This material is not intended to be relied upon as investment advice or recommendations, nor does it constitute a solicitation to buy or sell securities and should not be considered specific legal, investment or tax advice.