New Issue: Lehman prices $130,000 17.25% reverse exchangeables linked to Amazon.com

By E. Janene Geiss

Philadelphia, Nov. 29 - Lehman Brothers Holdings Inc. priced $130,000 of reverse exchangeable notes due May 30, 2008 linked to the common stock of Amazon.com, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The six-month notes will pay 8.625% for an annualized rate of 17.25%. Interest is payable monthly.

The payout at maturity will be par unless Amazon.com shares fall by more than 30% during the life of the notes and the final share price is less than the initial share price, in which case the payout will be a number of Amazon.com shares equal to $1,000 divided by the initial share price or, at Lehman's option, the equivalent cash value.

Lehman Brothers Inc. is the underwriter.

Issuer:	Lehman Brothers Holdings Inc.
Issue:	Reverse exchangeable notes
Underlying stock:	Amazon.com, Inc. (Symbol: AMZN)
Amount:	$130,000
Maturity:	May 30, 2008
Coupon:	17.25%, payable monthly
Price:	Par
Payout at maturity:	If Amazon.com shares close below the trigger price during the life of the notes and finish below the initial share price, 11.6836 Amazon.com shares or equivalent cash value; otherwise, par
Initial share price:	$85.59
Trigger price:	$59.913, 70% of initial share price
Pricing date:	Nov. 27
Settlement date:	Nov. 30
Underwriter:	Lehman Brothers Inc.
Fees:	2.25%

© 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.