New Issue: Lehman Brothers prices $7.426 million principal-protected notes linked to four base metals

By Jennifer Chiou

New York, June 25 - Lehman Brothers Holdings Inc. priced $7.426 million of zero-coupon 100% principal-protected notes due June 29, 2010 linked to a basket of base metals, according to an FWP filing with the Securities and Exchange Commission.

The basket includes equal weights of grade A copper, primary nickel, high grade primary aluminum and special high grade zinc.

At maturity, investors will receive par plus any positive return on the basket if the basket return is greater than 30%. Investors will receive par plus 30% if the basket return is better than a loss of 8%, but less than or equal to 30%. Investors will receive par if the basket loses 8% or more.

Lehman Brothers Inc. is the underwriter.

Issuer:	Lehman Brothers Holdings Inc.
Issue:	100% principal-protected notes
Underlying assets:	Equal weights of grade A copper, primary nickel, high grade primary aluminum and special high grade zinc
Amount:	$7.426 million
Maturity:	June 29, 2010
Coupon:	0%
Price:	Par
Payout at maturity:	Par plus any positive return if the basket return is greater than 30%; par plus 30% if the basket return is better than a loss of 8%, but less than or equal to 30%; par if the basket loses 8% or more
Initial strike prices:	Grade A copper at $7,510, primary nickel at $37,605, high grade primary aluminum at $2,659.50 and special high grade zinc at $3,525
Pricing date:	June 22
Settlement date:	June 29
Underwriter:	Lehman Brothers Inc.
Fees:	2%

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.