Published on 6/22/2007 in the Prospect News Structured Products Daily.
New Issue: Lehman prices $1.225 million 17.1% reverse exchangeables tied to least-performer in basket
By Jennifer Chiou
New York, June 22 - Lehman Brothers Holdings Inc. priced a $1.225 million offering of 17.1% reverse exchangeable notes due June 30, 2008 linked to the least-performing stock in a basket of common stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The basket includes Pfizer Inc., Citigroup Inc., Verizon Communications Inc., Altria Group, Inc., AT&T Inc., General Motors Corp., Merck & Co., Inc., General Electric Co., E.I. du Pont de Nemours and Co. and JPMorgan Chase & Co.
Interest is payable monthly.
If any stock in the basket falls below its trigger price - 65% of its initial share price - during the life of the notes and any stock finishes below its initial share price, the payout will be a number of shares of the worst-performing stock equal to $1,000 divided by that stock's initial share price.
Otherwise, investors will receive par.
Lehman Brothers is the agent.
| Issuer: | Lehman Brothers Holdings Inc.
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| Issue: | Reverse exchangeable notes
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| Underlying stocks: | Pfizer Inc., Citigroup Inc., Verizon Communications Inc., Altria Group, Inc., AT&T Inc., General Motors Corp., Merck & Co., Inc., General Electric Co., E.I. du Pont de Nemours and Co., JPMorgan Chase & Co.
|
| Amount: | $1.225 million
|
| Maturity: | June 30, 2008
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| Coupon: | 17.1%, payable monthly
|
| Price: | Par
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| Payout at maturity: | A number of shares of the worst-performing stock equal to $1,000 divided by that stock's initial share price if any stock in the basket falls below its trigger price, 65% of its initial share price, during the life of the notes and any stock finishes below its initial share price; otherwise par
|
| Initial share prices: | Pfizer at $25.71, Citigroup at $53.44, Verizon at $42.54, Altria at $68.27, AT&T at $39.53, GM at $35.34, Merck at $49.26, GE at $39.07, Dupont at $52.16, JPMorgan at $49.46
|
| Pricing date: | June 20
|
| Settlement date: | June 29
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| Agent: | Lehman Brothers
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| Fees: | 2.5%
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