By Laura Lutz
Des Moines, April 26 - Lehman Brothers Holdings Inc. priced a $1.505 million issue of 9.5% reverse exchangeable notes due May 1, 2008 linked to the common stock of Portfolio Recovery Associates, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable monthly.
Payout at maturity will be par unless Portfolio Recovery stock falls below the knock-in price of $44.64 - 80% of the initial share price - during the life of the notes and finishes below its initial share price of $55.80, in which case the payout will be a number of Portfolio Recovery 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: | Portfolio Recovery Associates, Inc.
|
| Amount: | $1.505 million
|
| Maturity: | May 1, 2008
|
| Coupon: | 9.5%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | Par unless Portfolio Recovery stock falls below the knock-in price of $44.64 during the life the notes and finishes below its initial share price, in which case payout will be 17.92115 Portfolio Recovery shares
|
| Initial share price: | $55.80
|
| Knock-in price: | $44.64, 80% of $55.80
|
| Pricing date: | April 25
|
| Settlement date: | April 30
|
| Underwriter: | Lehman Brothers Inc.
|
| Underwriting discount: | 3.45%
|
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