By Angela McDaniels
Seattle, Oct. 30 - Lehman Brothers Holdings Inc. priced $3.8 million of 0% return optimization securities with partial protection due April 30, 2009 linked to the S&P Financials index, according to an 424B2 filing with the Securities and Exchange Commission.
The index is a float-adjusted, capitalization-weighted index that is composed of 93 companies and is designed to effectively represent the performance of the U.S. financial sector.
The payout at maturity will be par plus double any index gain, subject to a maximum return of 26.5%. Investors will receive par if the index declines by 10% or less and will lose 1% for each 1% that the index declines beyond 10%.
UBS Financial Services Inc. and Lehman Brothers Inc. are the underwriters.
| Issuer: | Lehman Brothers Holdings Inc.
|
| Issue: | Return optimization securities with partial protection
|
| Underlying index: | S&P 500 Financials
|
| Amount: | $3,825,970
|
| Maturity: | April 30, 2009
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus double any index gain, capped at maximum return of 26.5%; par if index falls by 10% or less; 1% loss for each 1% decline beyond 10%
|
| Initial index level: | 451.5
|
| Pricing date: | Oct. 26
|
| Settlement date: | Oct. 31
|
| Underwriters: | UBS Financial Services Inc. and Lehman Brothers Inc.
|
| Fees: | 1.75%
|
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