By E. Janene Geiss
Philadelphia, April 26 - Lehman Brothers Holdings Inc. priced a $1.057 million issue reverse exchangeable notes due Oct. 27, 2007 linked to the common stock of Continental Airlines, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The six-month notes pay 9.5% for an annualized rate of 19%. Interest will be payable monthly.
Payout at maturity will be par unless Continental Airlines stock falls below the knock-in price of $27.17 - 70% of the initial share price - during the life of the notes and finishes below its initial share price of $38.81, in which case the payout will be a number of Continental Airlines 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: | Continental Airlines, Inc.
|
| Amount: | $1.057 million
|
| Maturity: | Oct. 27, 2007
|
| Coupon: | 19%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | Par unless Continental Airlines stock falls below the knock-in price of $27.17 during the life of the notes and finishes below its initial share price, in which case payout will be 25.767 Continental Airlines shares
|
| Initial share price: | $38.81
|
| Knock-in price: | $27.17, 70% of $38.81
|
| Pricing date: | April 24
|
| Settlement date: | April 27
|
| Underwriter: | Lehman Brothers Inc.
|
| Underwriting discount: | 2.25%
|
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