By E. Janene Geiss
Philadelphia, March 26 - Lehman Brothers Holdings Inc. priced a $5.4 million issue of 13.5% reverse exchangeable notes due March 28, 2008 linked to the common stock of Level 3 Communications, Inc., according to an FWP filing with the Securities and Exchange Commission.
Interest will be payable quarterly.
Payout at maturity will be par unless Level 3 stock falls below the knock-in price of $4.64 - 75% of the initial share price - during the life of the notes and finishes below its initial price of $6.18, in which case the payout will be a number of Level 3 shares equal to $1,000 divided by the initial share price.
Lehman Brothers Inc. is the underwriter.
| Issuer: | Lehman Brothers Holdings Inc.
|
| Issue: | Reverse exchangeable notes
|
| Underlying stock: | Level 3 Communications, Inc.
|
| Amount: | $5.4 million
|
| Maturity: | March 28, 2008
|
| Coupon: | 13.5%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | Par unless Level 3 stock falls below the knock-in price of $4.64 during the life of the notes and finishes below its initial share price, in which case payout will be 161.81 Level 3 shares
|
| Initial share price: | $6.18
|
| Knock-in price: | $4.64, 75% of $6.18
|
| Pricing date: | March 23
|
| Settlement date: | March 28
|
| Underwriter: | Lehman Brothers Inc.
|
| Underwriting discount: | 3.45%
|
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