By Angela McDaniels
Seattle, June 6 - Lehman Brothers Holdings Inc. priced a $1.963 million issue of reverse exchangeable notes due Sept. 7, 2007 linked to the common stock of JetBlue Airways Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The three-month notes will pay 5% for an annualized rate of 20%. Interest is payable monthly.
The payout at maturity will be par unless JetBlue stock falls below the knock-in price of $8.352 - 80% of the initial share price - during the life of the notes and finishes below its initial share price of $10.44, in which case the payout will be a number of JetBlue 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.
|
| Issue: | Reverse exchangeable notes
|
| Underlying stock: | JetBlue Airways Corp.
|
| Amount: | $1.963 million
|
| Maturity: | Sept. 7, 2007
|
| Coupon: | 20%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | If JetBlue Airways stock falls below the knock-in price during the life the notes and finishes below its initial share price, 95.78544 JetBlue shares or the equivalent cash value; otherwise, par
|
| Initial share price: | $10.44
|
| Knock-in price: | $8.352, 80% of $10.44
|
| Pricing date: | June 4
|
| Settlement date: | June 7
|
| Underwriter: | Lehman Brothers Inc.
|
| Fees: | 1.906%
|
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