Published on 4/20/2007 in the Prospect News Structured Products Daily.
New Issue: Lehman prices $89.498 million 7.25% Yeelds linked to El Paso
By Jennifer Chiou
New York, April 20 - Lehman Brothers Holdings Inc. priced an $89.498 million issue of notes due Oct. 25, 2007 structured as Yield Enhanced Equity Linked Debt Securities (Yeelds) linked to El Paso Corp. stock, according to a 424B5 filing with the Securities and Exchange Commission.
The six-month notes will pay 3.625% for an annualized rate of 7.25%. Interest is payable quarterly.
At maturity, investors will receive the value of one share of El Paso stock, capped at $16.61, 110% of the initial value of $15.10 that Lehman paid to hedge the transaction. The payout will be payable in stock or cash.
Lehman Brothers Inc., the underwriter, has a greenshoe for up to $13,424,655 of additional securities.
Issuer: | Lehman Brothers Holdings Inc.
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Issue: | Yeelds (Yield Enhanced Equity Linked Debt Securities) medium-term senior notes, series I
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Underlying stock: | El Paso Corp.
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Amount: | $89,497,700
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Greenshoe: | $13,424,655
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Maturity: | Oct. 25, 2007
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Coupon: | 7.25% annualized, payable quarterly
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Price: | Par of $15.10
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Payout at maturity: | Value of one share of El Paso stock, capped at $16.61, payable in stock or cash
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Cap price: | $16.61, 110% of initial value
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Pricing date: | April 18
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Settlement date: | April 25
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Underwriter: | Lehman Brothers Inc.
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Underwriting discount: | None
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