The following information was posted on Raymond James’ website:
Raymond James Offer to purchase eligible auction rate securities
After providing ready liquidity to investors for over 23 years, in mid-February 2008 the Auction Rate Securities (ARS) market reacted to the unprecedented contractions in the credit markets, resulting in widespread auction failures. While some issuers have redeemed significant portions of their outstanding ARS, the market for ARS remains mostly illiquid.
To address this illiquidity for clients, Raymond James is offering to purchase eligible ARS that clients purchased through us.
Raymond James’ offer to purchase outstanding ARS comes after a settlement with the Securities and Exchange Commission and the North American Securities Administrators Association.
Purchase request process
Qualified investors will receive information with terms of and instructions for redemption by mail within 30 days of the public announcement (June 29, 2011). Clients who believe they are eligible and do not receive instructions should contact their financial advisor or Raymond James Client Services at 800-647-7378.
For ARS to be eligible for the purchase offer, the following must be true:
- The securities must have been purchased from Raymond James on or before February 13, 2008.
- Clients must have held those securities on February 13, 2008.
- Clients must currently own the securities or have sold them below par value.
- The securities must have failed at auction at least once since February 13, 2008.
- The securities must not have been called or redeemed, or be subject to calls or redemptions as of June 29, 2011.
In accordance with the settlement, Raymond James will continue to consider client inquiries until 12 a.m. September 30, 2011.
Pricing and fees
If clients accept the offer, Raymond James will purchase eligible ARS at par value, which is the face value of the security. They will also receive payment of interest or dividends, if any, at the rate established at the last reset date and will not incur any fees or commissions for transactions related to the purchase of eligible securities.
Participating in this offer will not result in a waiver of any claims you may have against Raymond James. Important information on arbitration procedures that have been established to resolve any claims are available.
The above information was posted on Raymond James’ website.
Attorney Lars Soreide, of Soreide Law Group, PLLC, wants you to know that if you or a loved one DO NOT meet this criteria, call a Securities Arbitration Lawyer for a free consultation on how to recover your losses. To speak with an attorney, call 888-760-6552, or visit www.securitieslawyer.com.
Soreide Law Group, PLLC., representing investors nationwide before FINRA the Financial Industry Regulatory Authority.