By Laura Lutz
Des Moines, Jan. 8 - Lehman Brothers Holdings Inc. priced a $317,000 issue of 17.25% reverse exchangeable notes due July 9, 2008 linked to the common stock of CIT Group Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable monthly.
If CIT stock falls below the knock-in price of $10.995 - 50% of the initial value - during the life of the notes and finishes below its initial price of $21.99, the payout at maturity will be a number of CIT shares equal to par divided by the initial share price.
Otherwise, the payout will be par.
Lehman Brothers Inc. is the agent.
Issuer: | Lehman Brothers Holdings Inc.
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Issue: | Reverse exchangeable notes
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Underlying stock: | CIT Group Inc. (Symbol: CIT)
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Amount: | $317,000
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Maturity: | July 9, 2008
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Coupon: | 17.25%, payable monthly
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Price: | Par
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Payout at maturity: | If CIT stock falls below the knock-in price of $10.995 during the life the notes and finishes below its initial value, a number of shares equal to par divided by the initial share price; otherwise, par
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Initial price: | $21.99
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Knock-in price: | $10.995, 50% of $21.99
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Pricing date: | Jan. 4
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Settlement date: | Jan. 9
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Agent: | Lehman Brothers Inc.
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Fees: | 3.78%
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