New Issue: Lehman prices $610,000 buffered return enhanced notes linked to financial stock basket

By Angela McDaniels

Tacoma, Wash., Dec. 12 - Lehman Brothers Holdings Inc. priced $610,000 of 0% buffered return enhanced notes due Dec. 14, 2009 linked to a basket of financial companies, according to a 424B2 filing with the Securities and Exchange Commission.

The basket includes the common stocks of Citigroup Inc., the Goldman Sachs Group, Inc., Merrill Lynch & Co., Inc., Morgan Stanley, Wachovia Corp. and Washington Mutual, Inc., equally weighted.

The payout at maturity will be par plus 106.2% of any basket gain, capped at a maximum return of 70%. Investors will receive par if the basket falls by 25% or less and will lose 1% for each 1% that the basket falls beyond 25%.

Lehman Brothers Inc. is the underwriter.

Issuer:	Lehman Brothers Holdings Inc.
Issue:	Buffered return enhanced notes
Underlying stocks:	Citigroup Inc. (NYSE: C), the Goldman Sachs Group, Inc. (NYSE: GS), Merrill Lynch & Co., Inc. (NYSE: MER), Morgan Stanley (NYSE: MS), Wachovia Corp. (NYSE: WB) and Washington Mutual, Inc. (NYSE: WM)
Amount:	$610,000
Maturity:	Dec. 14, 2009
Coupon:	0%
Price:	Par
Payout at maturity:	Par plus 106.2% of any basket gain; par if basket falls by 25% or less; 1% loss for each 1% decline beyond 25%
Initial share prices:	$34.77 for Citigroup; $224.21 for Goldman Sachs; $62.20 for Merrill Lynch; $54.37 for Morgan Stanley; $44.46 for Wachovia; $19.88 for Washington Mutual
Pricing date:	Dec. 10
Settlement date:	Dec. 13
Underwriter:	Lehman Brothers Inc.
Fees:	1.02%

© 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.