By Jennifer Chiou
New York, Feb. 26 - Lehman Brothers Holdings Inc. priced $100,000 of 0% annual review notes with contingent protection due Feb. 27, 2011 linked to the common stock of General Electric Co., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be automatically called if General Electric stock closes above its initial price on any of the annual review dates. In that case, the redemption amount will be par plus 11.75% for each year that the notes were held.
If the notes are not called early and the stock does not close below 75% of its initial price during the life of the notes, the payout at maturity will be par.
If the notes are not called early and the stock does close below 75% at some point, the payout will be a number of General Electric shares equal to par divided by the initial price.
Lehman Brothers Inc. is the underwriter.
| Issuer: | Lehman Brothers Holdings Inc.
|
| Issue: | Annual review notes with contingent protection
|
| Underlying stock: | General Electric Co. (Symbol: GE)
|
| Amount: | $100,000
|
| Maturity: | Feb. 27, 2011
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par if stock does not close below 75% of initial price; otherwise, a number of GE shares equal to par divided by initial price; otherwise, par
|
| Call: | If closing price of each stock is above initial level on review date; at 111.75% of par on Feb. 25, 2009; 123.5% of par on Feb. 23, 2010; and 135.25% of par on Feb. 22, 2011
|
| Initial price: | $33.55
|
| Trigger price: | $25.1625, 75% of initial price
|
| Pricing date: | Feb. 22
|
| Settlement date: | Feb. 27
|
| Agent: | Lehman Brothers Inc.
|
| Fees: | 3.5%
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
