By Angela McDaniels
Seattle, April 23 - Lehman Brothers Holdings Inc. priced a $1 million issue of reverse exchangeable notes due Oct. 24, 2007 linked to the common stock of First BanCorp., according to a 424B5 filing with the Securities and Exchange Commission.
The six-month notes will pay 6.25% for an annualized rate of 12.5%. Interest is payable monthly.
The payout at maturity will be par unless First BanCorp stock falls below the trigger price of $9.525 and finishes below the initial share price of $12.70, in which case the payout will be a number of First BanCorp shares equal to $1,000 divided by the initial share price or, at Lehman's option, the equivalent cash value.
There is a $150,000 over-allotment option.
Lehman Brothers Inc. is the underwriter.
| Issuer: | Lehman Brothers Holdings Inc.
|
| Issue: | Reverse exchangeable notes
|
| Underlying stock: | First BanCorp
|
| Amount: | $1 million
|
| Greenshoe: | $150,000
|
| Maturity: | Oct. 24, 2007
|
| Coupon: | 12.5%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | If First BanCorp stock falls below the trigger price during the life of the notes and finishes below the initial share price, 78.74016 First BanCorp shares or the equivalent cash value; otherwise, par
|
| Initial share price: | $12.70
|
| Trigger price: | $9.525, 75% of initial share price
|
| Pricing date: | April 19
|
| Settlement date: | April 24
|
| Underwriter: | Lehman Brothers Inc.
|
| Underwriting discount: | 2%
|
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