Lehman to issue reverse convertibles linked to light sweet crude oil

By E. Janene Geiss

Philadelphia, Jan. 4 - Lehman Brothers Holdings Inc. plans to price an issue of single barrier synthetic reverse convertible notes linked to the price of light sweet crude oil, according to an FWP filing with the Securities and Exchange Commission.

The maturity is expected to be Jan. 13, 2008. The exact maturity will be determined at pricing, which is expected to be Jan. 5. Settlement is expected Jan. 12.

Payout at maturity will be par plus a fixed return of 10.10% if the price of crude oil, expressed as dollars per barrel, remains above the lower barrier during the life of the notes. If the price of crude oil falls below the lower barrier during the life of the notes and it finishes below the initial price, investors will share in any losses.

The lower barrier will be 75% of the crude oil strike price.

There will be no interest payments.

Lehman Brothers Inc. will be the underwriter for the offering.

© 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.