STRATS SM TRUST FOR U S CELL CORP SEC SERIES 2004 6 Annual Report - How They Did This Year

I’m putting together a simple guide to help you understand how this investment performed this year. Instead of digging through dense financial filings, we’ll break down what’s happening with the trust in plain English.

1. What is this Trust?

This isn't a typical company with employees or a CEO. It is a financial "pass-through" vehicle. The Trust’s only job is to hold $100 million in 7.25% Senior Notes due 2033, issued by United States Cellular Corporation.

When you own a certificate in this Trust, you receive a proportional slice of the interest payments United States Cellular Corporation pays on those notes. The Trust simply collects the 7.25% annual interest and passes it to you, minus small administrative costs.

2. Financial performance

The Trust’s only activity is receiving semi-annual interest payments and distributing them to investors. These payments arrived on schedule in June and December 2025, matching the 7.25% rate on the $100 million principal.

3. Financial health

The Trust is stable by design. It carries no debt and has no business costs other than small trustee fees. Its health depends entirely on United States Cellular Corporation. As of the latest report, U.S. Cellular is in good standing, ensuring the Trust can continue making payments.

4. Key risks that could hurt your investment

This is the most important section. Since the Trust is just a shell holding debt, your biggest risk is Credit Risk. If United States Cellular Corporation defaults on its 2033 notes, the Trust would have no money to pay you. Additionally, you face Interest Rate Risk. If market interest rates rise, the value of your certificates will likely fall because your 7.25% yield becomes less attractive to other buyers.

5. Future outlook

The plan for next year is simple: collect interest and distribute it to you. This continues until the notes mature on June 15, 2033. At that point, the principal is returned, and the Trust closes.

6. Market trends to watch

Watch the telecommunications industry, specifically U.S. Cellular’s cash flow and asset sales. Any pressure on U.S. Cellular’s ability to pay its debts directly affects your investment. Monitor their credit ratings from agencies like Moody’s or S&P to gauge the long-term safety of the Trust.

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Note to Investors: This Trust is exempt from many standard reporting requirements. To truly understand your investment, check the financial reports of United States Cellular Corporation (specifically their 10-K and 10-Q filings), as their financial health is the primary driver of your returns.