Lehman Brothers to price return optimization securities linked to S&P Financials

By Laura Lutz

Chicago, Oct. 19 - Lehman Brothers Holdings Inc. plans to price return optimization securities with partial protection due April 30, 2009 linked to the S&P Financials index, according to an FWP filing with the Securities and Exchange Commission.

If the final index level is at least the initial level, the payout at maturity will be par plus any gain on the index times a participation rate that is expected to be between 22.5% and 24.5%. The exact participation rate will be set at pricing.

If the index declines by up to 10%, the payout will be par. Investors will lose 1% for each 1% that the index declines beyond 10%.

The securities are expected to price on Oct. 26 and settle on Oct. 31.

UBS Financial Services Inc. and Lehman Brothers Inc. are the underwriters.

© 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.