By Angela McDaniels
Seattle, Oct. 11 - Lehman Brothers Holdings Inc. priced $20 million of 1% synthetic convertible notes due Aug. 17, 2014 linked to the common stock of Intel Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Each note is convertible into 36.446735 Intel shares, which equals a conversion price of $27.4373.
The payout at maturity will be par plus any increase in the share price over the conversion price. The redemption amount will be payable in cash or Intel shares, at Lehman's option.
The notes will be callable beginning Aug. 10, 2010. The redemption amount will be calculated in the same manner as the payout at maturity.
Lehman Brothers Inc. is the underwriter.
| Issuer: | Lehman Brothers Holdings Inc.
|
| Issue: | Synthetic convertible notes
|
| Underlying stock: | Intel Corp. (Symbol: INTC)
|
| Amount: | $20 million
|
| Maturity: | Aug. 17, 2014
|
| Coupon: | 1%, payable semiannually
|
| Price: | 103
|
| Payout at maturity: | Par plus any increase in the share price above the conversion price
|
| Call: | Beginning Aug. 10, 2010
|
| Conversion price: | $27.4373
|
| Pricing date: | Oct. 9
|
| Settlement date: | Oct. 16
|
| Underwriter: | Lehman Brothers Inc.
|
| Fees: | 0.1719%
|
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