By Laura Lutz
Des Moines, Oct. 25 - Lehman Brothers Holdings Inc. upsized the principal amount of its 2.4% synthetic convertible notes due Oct. 30, 2012 linked to the common stock of Icahn Enterprises LP to $4 million from $3.65 million, according to a 424B2 filing with the Securities and Exchange Commission.
The notes were priced at 112 for total proceeds of $4.48 million.
Interest will be payable semiannually.
Each note is convertible into 6.2578 shares, which equals a conversion price of $159.8001. The conversion premium is 23.56% over the execution price of $129.33.
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 Icahn shares, at Lehman's option.
The notes will be callable beginning Oct. 23, 2010. The redemption amount will be calculated in the same manner as the payout at maturity. Holders can also convert at any time.
Lehman Brothers Inc. is the underwriter.
| Issuer: | Lehman Brothers Holdings Inc.
|
| Issue: | Synthetic convertible notes
|
| Underlying stock: | Icahn Enterprises LP (Symbol: IEP)
|
| Face amount: | $4 million
|
| Proceeds: | $4.48 million
|
| Maturity: | Oct. 30, 2012
|
| Coupon: | 2.4%
|
| Price: | 112
|
| Payout at maturity: | Par plus any increase in the share price above the conversion price
|
| Call: | Beginning Oct. 23, 2010; for par plus any increase in the share price over the conversion price
|
| Conversion premium: | 23.56%
|
| Conversion price: | $159.8001
|
| Conversion ratio: | 6.2578
|
| Pricing date: | Oct. 23 for $3.65 million principal amount; Oct. 25 for $350,000 principal amount
|
| Settlement date: | Oct. 30
|
| Underwriter: | Lehman Brothers Inc.
|
| Fees: | 0.1161%
|
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