Key Highlights

  • Select Notes Trust LT 2004-1 distributed $151,959.05 in interest to certificate holders for the July 1, 2026 period.
  • The trust reported $626,516.83 in net advances owed to the advancing party as of the distribution date.
  • Certificate holders will receive $3.142589 per unit in interest income for 2026 tax reporting.
  • No payments were received on underlying securities except a $100,500.00 payment from U.S. Cellular Corp (OTC: USM).

Trust Discloses July Distribution

Select Notes Trust LT 2004-1 has released details of its latest interest distribution, marking a routine but closely watched event for fixed‑income investors. The trust, structured in 2004, distributed $151,959.05 to certificate holders for the period ending July 1, 2026. This payout reflects the trust’s ongoing obligations under its securitized note structure.

Interest Income Breakdown

Holders will report $3.142589 per certificate as interest income on their 2026 Form 1099 filings. The trust collected $100,500.00 in interest during the period, with the remainder of the distribution funded by advances. This per‑unit figure is critical for tax planning among non‑corporate investors in structured notes.

Advances Drive Liquidity

The trust relied on $62,083.00 in new advances to meet its distribution obligations, bringing the total outstanding balance to $626,516.83. No repayments were made to the advancing party during the period, signaling potential liquidity strain. Investors monitor these advances as a key indicator of the trust’s financial health.

Underlying Security Performance

Payments from underlying securities remained minimal, with only U.S. Cellular Corp contributing $100,500.00. Other holdings, including Century Tel Inc 6.875% notes and Credit Suisse FB USA 7.125% bonds, reported zero payments.

This lack of cash flow underscores the trust’s dependence on advances.

Tax Implications for Holders

Certificate holders must account for $0.332317 per unit in interest expense, which may qualify as deductible investment indebtedness. The trust’s filings specify this amount should be noted in Form 1099 footnotes. Tax advisors emphasize the importance of these details for high‑net‑worth investors in structured products.

Certificate and Principal Data

As of July 1, 2026, 31,980 certificates remained outstanding, reflecting a 90.619137% factor applied to the original principal. The factor’s decline over time is typical for amortizing structured notes. 20549 or via its online portal.

This article is for informational purposes only and does not constitute financial advice. Please consult a licensed financial adviser before making investment decisions.