By Laura Lutz
Des Moines, Oct. 9 - Lehman Brothers Holdings Inc. priced a $7.75 million issue of 0% knock-out return-enhanced notes due Dec. 15, 2008 linked to the shares of the iShares MSCI Emerging Markets index fund, according to a 424B2 filing with the Securities and Exchange Commission.
If shares of the index fund close above the knock-out level, 131% of the initial level, during the life of the notes, the payout will be 131% of par.
If no such knock-out event occurs and the final share price is at least the initial price, the payout will be par plus 200% of any gain on the index fund.
If no knock-out event occurs and the final share price is less than the initial price, the payout will be par times the final share performance.
J.P. Morgan Securities Inc. will act as underwriter.
| Issuer: | Lehman Brothers Holdings Inc.
|
| Issue: | Knock-out return-enhanced notes
|
| Underlying shares: | iShares MSCI Emerging Markets index fund
|
| Amount: | $7,749,000
|
| Maturity: | Dec. 15, 2008
|
| Coupon: | 0%
|
| Price: | Par
|
| Yield: | 0%
|
| Payout at maturity: | If shares ever close above knock-out level, 131% of par; if shares never close above knock-out level but finish above initial level, par plus 200% of gain on index fund; otherwise, par times final share performance
|
| Initial level: | $156.50
|
| Knock-out level: | 131% of initial level
|
| Pricing date: | Nov. 7
|
| Settlement date: | Nov. 13
|
| Underwriter: | J.P. Morgan Securities Inc.
|
| Fees: | 2.4%, including 1% for selling concessions
|
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