Published on 10/29/2007 in the Prospect News Structured Products Daily.
New Issue: Lehman sells $2.15 million 16.55% reverse exchangeables linked to worst performer in stock basket
By E. Janene Geiss
Philadelphia, Oct. 29 - Lehman Brothers Holdings Inc. priced a $2.15 million issue of 16.55% annualized reverse exchangeable notes due April 30, 2008 linked to the least-performing stock in a basket of three common stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of Arch Coal, Inc., Goldcorp Inc. and Alcoa Inc.
Interest is payable monthly.
Payout at maturity will be par unless any stock in the basket falls below its knock-in price - 60% of the initial share price - during the life of the notes and any stock finishes below its initial share price, in which case the payout will be a number of shares of the least-performing stock equal to $1,000 divided by that stock's initial share price.
Lehman Brothers is the underwriter.
| Issuer: | Lehman Brothers Holdings Inc.
|
| Issue: | Reverse exchangeable notes
|
| Underlying stock basket: | Arch Coal, Inc. (NYSE: ACI); Goldcorp Inc. (NYSE: GG); Alcoa Inc. (NYSE: AA)
|
| Amount: | $2,154,000
|
| Maturity: | April 30, 2008
|
| Coupon: | 16.55% annualized, payable monthly
|
| Price: | Par
|
| Payout at maturity: | Par unless any of the stocks in the basket falls below its knock-in price during the life the notes and any stock finishes below its initial value, in which case payout will be a number of shares of the least-performing stock in the basket equal to $1,000 divided by the initial share price
|
| Initial share prices: | $39.33 for Arch Coal, $32.30 for Goldcorp, $38.39 for Alcoa
|
| Knock-in prices: | $25.598 for Arch Coal, $19.380 for Goldcorp, $23.034 for Alcoa; 60% of initial value
|
| Pricing date: | Oct. 29
|
| Settlement date: | Oct. 31
|
| Underwriter: | Lehman Brothers Inc.
|
| Fees: | 2.25%
|
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