By Laura Lutz
Des Moines, March 26 - Lehman Brothers Holdings Inc. priced a $10 million issue of 1% performance-linked medium-term senior notes due March 29, 2014 linked to International Game Technology common stock, according to a 424B5 filing with the Securities and Exchange Commission.
The notes can be converted at any time for stock at the holder's option.
At maturity or upon conversion, investors will receive the greater of par and par times the final value of the stock divided by the exchange premium of $45.3201, or 112.04% of the $40.45 price that Lehman paid to hedge the notes.
The payout at maturity may be in cash or stock, at Lehman's option.
The notes are expected to settle on March 29. There is a $1.5 million greenshoe.
Lehman Brothers, the underwriter, will receive a 0.13% fee.
| Issuer: | Lehman Brothers Holdings Inc.
|
| Issue: | Performance-linked medium-term senior notes
|
| Underlying stock: | International Game Technology
|
| Amount: | $10 million
|
| Greenshoe: | $1.5 million
|
| Maturity: | March 29, 2014
|
| Coupon: | 1%
|
| Price: | Par
|
| Payout at maturity: | Greater of par and par times the final value of the stock divided by $45.3201
|
| Exchange premium: | 112.04%
|
| Pricing date: | March 22
|
| Settlement date: | March 29
|
| Underwriter: | Lehman Brothers Inc.
|
| Fees: | 0.13%
|
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