By E. Janene Geiss
Philadelphia, May 11 - Lehman Brothers Holdings Inc. priced a $35 million issue of 1% performance-linked medium-term senior notes due May 14, 2012 linked to International Game Technology common stock, according to a 424B5 filing with the Securities and Exchange Commission.
The notes can be converted at any time for stock at the holder's option.
The notes are callable beginning May 7, 2010. Lehman must give at least 30 days' notice.
At maturity or upon conversion, investors will receive the greater of par and the increase in the value of the stock beyond 15.65% above the price that Lehman paid to hedge the notes.
The payout at maturity may be in cash or stock, at Lehman's option.
There is a $5.25 million greenshoe.
Lehman Brothers is the underwriter.
| Issuer: | Lehman Brothers Holdings Inc.
|
| Issue: | Performance-linked medium-term senior notes
|
| Underlying stock: | International Game Technology
|
| Amount: | $35 million
|
| Greenshoe: | $5.25 million
|
| Maturity: | May 14, 2012
|
| Coupon: | 1%
|
| Price: | Par
|
| Payout at maturity: | Greater of par and increase in value of stock above 15.65%
|
| Exchange premium: | 15.65%
|
| Call: | May 7, 2010 onwards; payout at greater of par or value if converted
|
| Pricing date: | May 7
|
| Settlement date: | May 14
|
| Underwriter: | Lehman Brothers Inc.
|
| Underwriting discount: | 0.13%
|
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