By Angela McDaniels
Seattle, May 25 - Lehman Brothers Holdings Inc. priced a $3.106 million issue of reverse exchangeable notes due Nov. 30, 2007 linked to the common stock of General Motors Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The six-month notes will pay 8.5% for an annualized rate of 17%. Interest is payable monthly.
The payout at maturity will be par unless GM stock falls by more than 25% during the life of the notes and finishes below the initial share price, in which case the payout will be a number of GM shares equal to $1,000 divided by the initial share price or, at Lehman's option, the equivalent cash value.
Lehman Brothers Inc. is the underwriter.
Issuer: | Lehman Brothers Holdings Inc.
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Issue: | Reverse exchangeable notes
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Underlying stock: | General Motors Corp.
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Amount: | $3.106 million
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Maturity: | Nov. 30, 2007
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Coupon: | 17%, payable monthly
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Price: | Par
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Payout at maturity: | If GM stock closes below the trigger price during the life of the notes and finishes below the initial share price, 32.81917 GM shares or the equivalent cash value; otherwise, par
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Initial share price: | $30.47
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Trigger price: | $22.8525, 75% of initial share price
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Pricing date: | May 24
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Settlement date: | May 31
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Underwriter: | Lehman Brothers Inc.
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Fees: | 2.225%
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