Published on 10/29/2007 in the Prospect News Structured Products Daily.
New Issue: Lehman prices $65 million 13% reverse exchangeables tied to Time Warner for Eksportfinans
By Jennifer Chiou
New York, Oct. 29 - Lehman Brothers Holdings Inc. priced a $65 million issue of 13% reverse exchangeable notes due Nov. 1, 2008 linked to the common stock of Time Warner Inc. for issuer Eksportfinans ASA, according to an FWP filing with the Securities and Exchange Commission.
Interest is payable monthly.
At maturity, investors will receive 0.896861 times the final settlement value of Time Warner stock, with a floor of $11.43, 62.78% of the initial value.
The payout is capped at par of $18.20 unless the stock rises above the upper strike price of $21.98, 120.75% of the initial value, in which case investors will receive par plus 0.65 times the final value less the upper strike price.
The payout is in cash or stock, at the issuer's option.
| Issuer: | Eksportfinans ASA
|
| Issue: | Reverse exchangeable notes
|
| Underlying stock: | Time Warner Inc. (Symbol: TWX)
|
| Amount: | $65,001,300
|
| Maturity: | Nov. 1, 2008
|
| Coupon: | 13%, payable monthly
|
| Price: | Par of $18.20
|
| Payout at maturity: | 0.896861 times the final settlement value of Time Warner stock, with a floor of $11.43, 62.78% of the initial value; the payout is capped at par of $18.20 unless the stock rises above the upper strike price of $21.98, 120.75% of the initial value, in which case investors will receive par plus 0.65 times the final value less the upper strike price; payable in cash or stock at the issuer's option
|
| Equity cap price: | $18.20, 100% of initial price
|
| Upper strike price: | $21.98, 120.75% of initial price
|
| Lower strike price: | $12.74, 70% of initial price
|
| Equity floor price: | $11.43, 62.78% of initial price
|
| Pricing date: | Oct. 29
|
| Settlement date: | Oct. 31
|
| Underwriter: | Lehman Brothers Holdings Inc.
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