Merrill Lynch Depositor Inc (PIY) Quote

Last trade per FINRA TRACE 71.00 (4/29/21)

I paid $2,905.74 for 216 certificates representing $5,400 in principal amount or 53.81 cents on the dollar. I received $6,417 in principal amount of bonds worth $4,556.07, up $1,650.33 or 56.8 percent.

Someone asked me about the squirrel reference.

As expected when a public company files for bankruptcy, securities prices usually drop dramatically. In the case of PIY, the last trade was $6.88 on 5/13/20. I was confident that the Senior Note class would end up being the fulcum security, however, my fear was that I had paid too much.

I should have bought more.

And hindsight is always 20/20.

1

A holder of a $25 Certificate received $29.710145 in principal amount of Frontier Communications Corp. 7.05% Unsecured Debentures due 10/01/46.

I paid $2,905.74 for 216 certificates representing $5,400 in principal amount or 53.81 cents on the dollar. I received $6,417 in principal amount of bonds worth $3,336.84 today.

Class 10 - Senior Note Claims

[...]

Treatment: On the Effective Date, each Holder of an Allowed Senior Notes Claim shall receive (i) its Pro Rata share of and interest in the Incremental Payment Amount that is to be made on account of such Holders’ series of Senior Notes; and (ii) its Pro Rata share of and interest in (after first reducing, for distribution purposes only, the amount of such Holder’s Allowed Senior Notes Claim on a dollar-for-dollar basis by the amount of Incremental Payments, and solely to the extent actually paid):

A. 100% of Reorganized Frontier’s New Common Stock, subject to dilution by the Management Incentive Plan;

B. the Takeback Debt, if any; and

C. the Surplus Cash, if any.
Even a blind squirrel finds a nut once in a while.

The Bank of New York Mellon, as Trustee for the Trust, issued a press release regarding the bankruptcy filing by Frontier Communications Corporation (the “Underlying Securities Issuer”) and the termination of the Trust. Under the terms of the Trust Agreement, pursuant to a Distribution Election, distributions are expected to be made to the holders of the Certificates upon presentation of the Certificates beginning May 11, 2020 as described in the press release (5/05/20)

May 7, 2020

NOTICE TO HOLDERS OF PREFERRED PLUS 8.375% TRUST CERTIFICATES SERIES CZN-1 (THE “CERTIFICATES”), ISSUED UNDER THE SERIES SUPPLEMENT BETWEEN MERRILL LYNCH DEPOSITOR, INC. AS DEPOSITOR AND THE BANK OF NEW YORK MELLON AS TRUSTEE AND SECURITIES INTERMEDIARY DATED AUGUST 29, 2001

CUSIP1: 740434881

THIS NOTICE CONTAINS IMPORTANT INFORMATION THAT IS OF INTEREST TO THE BENEFICIAL OWNERS OF THE SUBJECT SECURITIES. IF APPLICABLE, ALL DEPOSITORIES, CUSTODIANS AND OTHER INTERMEDIARIES RECEIVING THIS NOTICE ARE REQUESTED TO EXPEDITE RETRANSMITTAL TO SUCH BENEFICIAL OWNERS IN A TIMELY MANNER.

The Bank of New York Mellon is the Trustee under the Trust Agreement (the “Trust Agreement”) which incorporates the Standard Terms for Trust Agreements between Merrill Lynch Depositor, Inc. as Depositor and United States Trust Company of New York as Trustee and Securities Intermediary dated as of February 20, 1998 (the “Standard Terms”) and the Series Supplement dated as of August 29, 2001 (the “Series Supplement”). Capitalized terms used but not defined herein shall have the same meaning or meanings ascribed to them in the Trust Agreement.

The purpose of this Notice is to advise you that Frontier Communications Corporation, which is the issuer of the Underlying Securities, and certain of its direct and indirect subsidiaries filed a Chapter 11 voluntary petition on April 14, 2020 in the United States Bankruptcy Court for the Southern District of New York. This filing results in an acceleration of the Underlying Securities and no payment has been received. As a result of such event, the Trustee is directed under Section 3.04 of the Standard Terms and the definition of Distribution Election under the Series Supplement to distribute the principal amount of Underlying Securities pro rata to the Certificateholders.

Distribution of the Underlying Securities will be made upon presentation of the Certificates for cancellation beginning May 11, 2020 through the DTC’s DWAC System. The Bank of New York

Mellon’s DTC participant number is 901. The Trust will terminate following the distribution of all Underlying Securities.

The Trustee will distribute a face amount of $41,000,000 in Underlying Securities to the 1,380,000 in $25 Certificates which is $29.710145 per certificate. The distribution is considered a bankruptcy distribution with no attribution to principal or interest.

Beneficial owners of the Certificates will receive distributions through the facilities of The Depository Trust Company (“DTC”) and the intermediaries through which they hold their Certificates. Beneficial owners of Certificates should inquire with the intermediary holding their Certificates with respect to the distribution set forth herein.

DTC Participants must accept the distribution of underlying securities through the DTC’s DWAC System. Please provide DTC participant number for distribution.

The foregoing is not intended and should not be construed as investment, accounting, financial, legal or tax advice by or on behalf of the Trustee, or its directors, officers, agents, attorneys or employees. Each person receiving this notice is urged to carefully review it and should seek the advice of its own advisors in respect of the matters set forth herein.

If any Holders have questions about this Notice, they may contact David M. Kerr, Vice President, The Bank of New York Mellon, at david.m.kerr@bnymellon.com.

THE BANK OF NEW YORK MELLON, as Trustee

https://www.sec.gov/Archives/edgar/data/1157987/000090342320000038/pplusczn18kex991_0507.htm