By E. Janene Geiss
Philadelphia, May 11 - Lehman Brothers Holdings Inc. priced a $10 million issue of 0% performance-linked medium-term senior notes due May 15, 2012 linked to McDonald's Corp. 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 8, 2010. Lehman must give at least 30 days' notice.
At maturity or upon conversion, investors will receive the greater of par and par times the final value of the stock divided by the exchange premium of $51.9960, or 105% of the price that Lehman paid to hedge the notes.
The payout at maturity may be in cash or stock, at Lehman's option.
Lehman Brothers is the underwriter.
| Issuer: | Lehman Brothers Holdings Inc.
|
| Issue: | Performance-linked medium-term senior notes
|
| Underlying stock: | McDonald's Corp.
|
| Amount: | $10 million
|
| Greenshoe: | $1.5 million
|
| Maturity: | May 15, 2012
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Greater of par and par times the final value of the stock divided by $51.9960
|
| Exchange premium: | 5%
|
| Exchange price: | $51.9960
|
| Call: | May 8, 2010 onwards using same calculation as at maturity
|
| Pricing date: | May 8
|
| Settlement date: | May 15
|
| Underwriter: | Lehman Brothers Inc.
|
| Underwriting discount: | 0.13%
|
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