Published on 8/31/2007 in the Prospect News Structured Products Daily.
New Issue: Lehman prices $834,000 19% reverse exchangeables linked to H&R Block
By E. Janene Geiss
Philadelphia, Aug. 31 - Lehman Brothers Holdings Inc. priced an $834,000 issue of reverse exchangeable notes due Nov. 30, 2007 linked to H&R Block, Inc. common stock, according to a 424B2 filing with the Securities and Exchange Commission.
The three-month notes will pay 4.75% for an annualized rate of 19%. Interest is payable monthly.
The payout at maturity will be par unless the H&R Block shares fall by more than 20% during the life of the notes and finish below the initial price, in which case the payout will be a number of H&R Block shares equal to $1,000 divided by the initial price or, at the bank's option, the equivalent cash value.
Lehman Brothers Inc. is the agent.
Issuer: | Lehman Brothers Holdings Inc.
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Issue: | Reverse exchangeable notes
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Underlying security: | H&R Block, Inc. (Symbol: HRB)
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Amount: | $834,000
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Maturity: | Nov. 30, 2007
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Coupon: | 19% annualized, payable monthly
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Price: | Par
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Payout at maturity: | If the shares fall below the trigger price during the life of the notes and finish below the initial price, a number of shares equal to $1,000 divided by the initial price or the equivalent cash value; otherwise, par
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Initial share price: | $18.84
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Trigger price: | $15.072, 80% of initial share price
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Pricing date: | Aug. 28
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Settlement date: | Aug. 31
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Agent: | Lehman Brothers Inc.
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Fees: | 1.85%
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