Published on 11/29/2007 in the Prospect News Structured Products Daily.
New Issue: Lehman sells $1.2 million 28.7% notes linked to worst-performing of three stocks
By Angela McDaniels
Tacoma, Wash., Nov. 29 - Lehman Brothers Holdings Inc. priced $1.2 million of 28.7% reverse exchangeable notes due May 30, 2008 linked to the performance of a basket of stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The basket includes the common stocks of Apple Inc., Research In Motion Ltd. and Google Inc.
Interest is payable monthly.
The payout at maturity will be par unless any basket stock closes below its trigger price - 70% of its initial share price - during the life of the notes and the final share price of any basket stock is below its initial share price, in which case the payout will be a number of shares of the worst-performing basket stock equal to $1,000 divided by that stock's 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 stocks: | Apple Inc. (Nasdaq: AAPL), Research In Motion Ltd. (Nasdaq: RIMM) and Google Inc. (Nasdaq: GOOG)
|
| Amount: | $1,233,000
|
| Maturity: | May 30, 2008
|
| Coupon: | 28.7%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | If any stock closes below its trigger price during the life of the notes and any stock finishes below its initial share price, a number of shares of the worst-performing stock equal to $1,000 divided by that stock's initial share price or the equivalent cash value; otherwise, par
|
| Initial share prices: | $174.81 for Apple, $115.68 for Research In Motion, $673.57 for Google
|
| Trigger prices: | $122.367 for Apple, $80.976 for Reseach In Motion, $471.499 for Google
|
| Pricing date: | Nov. 27
|
| Settlement date: | Nov. 30
|
| Underwriter: | Lehman Brothers Inc.
|
| Fees: | 2.25%
|
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