Business: Williams Cos. Inc., 5.5% Junior Subordinated Convertible Debentures due 6/1/2033, issued in $50 denominations, and maturing 6/1/2033. <p> Interest distributions of 5.50% ($2.75) per annum are paid quarterly on 3/1, 6/1, 9/1 & 12/1 to holders of record on the record date which is 2/15, 5/15, 8/15 & 11/15 respectively (NOTE: the ex-dividend date is one business day prior to the record date). The company has the right, at any time, to defer interest payments for up to 20 consecutive quarters (but not beyond the maturity date). <p> Distributions paid by these debt securities are interest and as such are NOT eligible for the preferential 15% to 20% tax rate on dividends and are also NOT eligible for the dividend received deduction for corporate holders.<p> The debentures are convertible any time at the holder's option into 4.5907 common shares of Williams Cos. Inc. (NYSE: WMB), an initial conversion price of $10.89 per common share. On or after 6/1/2010, if the price of the common stock exceeds 130% of the conversion price for 20 of any 30 consecutive trading days, the company may, at their option, cause the debentures to be converted into common shares at the then prevailing conversion price. Units are expected to trade flat, which means accrued interest will be reflected in the trading price and the purchasers will not pay and the sellers will not receive any accrued and unpaid interest.<p> The payment of principal and interest on the convertible debentures will rank junior to all present and future senior and senior subordinated debt. In addition, payment of principal and interest on the convertible debentures will be structurally subordinated to the liabilities of their subsidiaries, including subsidiary debt. See the IPO prospectus for further information on the debt securities by clicking on the ‘Link to IPO Prospectus’ provided below.