By E. Janene Geiss
Philadelphia, May 21 - Lehman Brothers Holdings Inc. priced a $1.734 million issue of reverse exchangeable notes due Nov. 30, 2007 linked to the common stock of Freeport-McMoRan Copper & Gold Inc., according to an FWP filing with the Securities and Exchange Commission.
The six-month notes will pay 7.85% for an annualized rate of 15.7%. Interest will be payable monthly.
Payout at maturity will be par unless Freeport-McMoRan stock falls below the knock-in price of $53.37 - 75% of the initial share price - during the life of the notes and finishes below its initial share price of $71.15, in which case the payout will be a number of Freeport-McMoRan 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: | Freeport-McMoRan Copper & Gold Inc.
|
| Amount: | $1.734 million
|
| Maturity: | Nov. 30, 2007
|
| Coupon: | 7.85%, (15.7% annual equivalent); payable monthly
|
| Price: | Par
|
| Payout at maturity: | Par unless Freeport-McMoRan stock falls below the knock-in price of $53.37 during the life of the notes and finishes below its initial share price, in which case payout will be a number of Freeport-McMoRan shares equal to $1,000 divided by the initial share price
|
| Initial share price: | $71.15
|
| Knock-in price: | $53.37, 75% of $71.15
|
| Pricing date: | May 18
|
| Settlement date: | May 31
|
| Underwriter: | Lehman Brothers Inc.
|
| Fees: | 2.25%
|
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