MADISON, N.J., July 3, 2008 (PRIME NEWSWIRE) -- MacroMarkets LLC today distributed the final proceeds payable as a result of the liquidation of MacroShares Oil Up (AMEX:UCR) and Down (AMEX:DCR) trusts.
MacroShares Oil's last day of trading on the American Stock Exchange was June 25, 2008 and all proceeds were paid out today, July 3, 2008 to shareholders of record as of June 30, 2008.
MacroShares Oil Up shareholders received a total of $40.000343 per share based on the underlying value of the trusts. The MacroShares Oil Down shareholders received $0, due to the tremendous increases in oil prices that have occurred since the securities were launched in November 2006.
"This marks the culmination of our first set of MacroShares products," commented Sam Masucci, President and CEO of MacroMarkets. "MacroShares Oil gathered more than $1.5 billion in assets filling institutional and retail investor needs for accessing the oil market. On Tuesday, we launched MacroShares $100 Oil, which is the second set of MacroShares products that will provide investors with a way to invest in crude oil, without investing in oil futures contracts."
MacroShares Oil was designed to transfer assets between the Up and Down trusts as their NYMEX light sweet crude oil benchmark price moves. When launched, the benchmark oil price was $60. Since the securities transfer assets on a dollar-for-dollar basis, the Up Trust cannot deliver performance of the benchmark oil price beyond $120 (Up Trust's underlying value hits a ceiling once the Down Trust's underlying value is $0.00). With this in mind, MacroShares Oil originally built an early termination event into the security structure once oil prices approached $120. The early termination event occurred on April 16, 2008, when the benchmark oil price closed at or above $111 for the third consecutive business day.
The newest MacroShares products, MacroShares $100 Oil Up (AMEX:UOY) and Down (AMEX:DOY) were launched on the American Stock Exchange on July 1. The structure will be similar to that of the UCR and DCR and will allow investors to benefit from either the upward or downward price movement of its benchmark NYMEX light sweet crude oil futures contact. MacroShares $100 Oil will be based on a reference price of $100 for the benchmarked NYMEX light sweet crude oil futures contract, and will cover a range of prices between $0 and $200, with an early termination trigger occurring when the benchmarked NYMEX light sweet crude oil price closes at or above $185 for three consecutive business days.
For additional information, shareholders in these securities may call MacroMarkets at 888-Macros1 x 300 or 973-889-1973 x300.
Macro Securities Depositor, LLC is a Delaware limited liability company and is acting as the depositor for the MacroShares Oil Up and Down trusts. A registration statement (including prospectus) has been filed with the Securities and Exchange Commission (SEC) for the offering to which this communication relates. Before you invest, you should read the prospectus in the registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, Macro Securities Depositor, LLC, any underwriter or dealer participating in the offering will arrange to send you the prospectus if you request by calling toll-free (888) Macros1 extension 300 or 973-889-1973. You may also request a copy of the prospectus by accessing the MacroShares website at www.MacroShares.com.
MacroMarkets LLC is the Administrative Agent and its subsidiary, Macro Financial, LLC, is the marketing agent for the MacroShares Holding and Tradeable Trusts. Macro Financial is registered with the SEC as a broker-dealer and is a member of the Financial Industry Regulatory Authority.
Important Risks
This Information does not represent an offer to sell securities of the MacroShares Holding and Tradeable Trusts and it is not soliciting an offer to buy securities of these Trusts. There can be no assurance that the Trusts will achieve their investment objectives. An investment in a MacroShare Holding or Tradeable Trust involves significant risks, including the risk of loss of substantially all of your investment. There is no guarantee as to the amount of any quarterly distribution or the amount of the final distribution to shareholders. You should review the risk factors in the prospectus prior to investing in a Holding or Tradeable Trust.
The Holding Trusts continuously offer shares through Authorized Participants. MacroShares Holding Shares may be converted to MacroShares Tradeable Shares, which can be bought and sold on the American Stock Exchange. There is no guarantee that a market for any MacroShares Holding or Tradeable Shares will continue.
Fluctuations in the underlying value of a Tradeable Trust or its related Holding Trusts and other factors may affect the market price of your MacroShares investment. An investment in a Tradeable Trust or its related Holding Trust will not resemble a direct investment in the asset being tracked. The price of the asset being tracked by a Tradeable Trust or its related Holding Trust may be volatile. It may be difficult to predict whether in the long-term the price of the asset being tracked will reflect a generally upward or downward trend. There are risks associated with investing in a product linked to a benchmark. A substitute price may be used as the reference price of the benchmark asset.
MacroMarkets LLC and their respective affiliates do not provide tax advice. Investors are urged to consult their tax advisor to fully understand the tax implications associated with and investment in any Tradeable Trust (or its related Holding Trust). Investors are hereby notified that: (A) any discussion of federal tax issues in this press release is not intended or written to be relied upon, and cannot be relied upon by investors for the purpose of avoiding penalties that may be imposed on investors under the Internal Revenue Code; (B) such discussion is being used in connection with the promotion or marketing by Macro Securities Depositor, LLC and the Holding and Tradeable Trusts of the transactions or matters addressed herein; and (C) investors should seek advice based on their particular circumstances from an independent tax advisor.
Additional Information about MacroShares Oil can be found at www.MacroShares.com.