By E. Janene Geiss
Philadelphia, April 26 - Lehman Brothers Holdings Inc. priced a $2.026 million issue of 7.75% (15.5% annual equivalent) reverse exchangeable notes due Oct. 27, 2007 linked to the common stock of General Motors Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable monthly.
Payout at maturity will be par unless General Motors stock falls below the knock-in price of $21.54 - 70% of the initial share price - during the life of the notes and finishes below its initial share price of $30.77, in which case the payout will be a number of General Motors shares equal to $1,000 divided by the initial share price.
Lehman Brothers Inc. is the underwriter.
| Issuer: | Lehman Brothers Holdings Inc.
|
| Issue: | Reverse exchangeable notes
|
| Underlying stock: | General Motors Corp.
|
| Amount: | $2.026 million
|
| Maturity: | Oct. 27, 2007
|
| Coupon: | 7.75% (15.5% annual equivalent), payable monthly
|
| Price: | Par
|
| Payout at maturity: | Par unless General Motors stock falls below the knock-in price of $21.54 during the life of the notes and finishes below its initial share price, in which case payout will be 32.499 General Motors shares
|
| Initial share price: | $30.77
|
| Knock-in price: | $21.54, 70% of $30.77
|
| Pricing date: | April 24
|
| Settlement date: | April 27
|
| Underwriter: | Lehman Brothers Inc.
|
| Underwriting discount: | 2.25%
|
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