Lehman to issue FX Digital Plus Notes linked to currency basket

By E. Janene Geiss

Philadelphia, July 3 - Lehman Brothers Holdings Inc. plans to price an issue of Foreign Exchange Digital Plus Notes expected to mature Sept. 26, 2008 linked to a basket of currencies, according to an FWP filing with the Securities and Exchange Commission.

The basket includes equal weights (16.67%) of long positions in the Brazilian real, Hungarian forint, Indian rupee, Indonesia rupiah, Mexican peso and Turkish lira, all versus short positions in the dollar.

If the basket return against the dollar is below or equal to zero, payout at maturity will be par. If the basket increases between 10.5% and 11.5%, payout will be par plus between 10.5% and 11.5%. If the basket increases between 10.5% and 11.5% or more, the payout will be between 10.5% and 11.5% plus 150% of the basket return. The exact basket return percentages, payout percentages and leverage amount will be determined at pricing.

There will be no interest payments.

The notes are expected to price July 20 and settle July 26. The exact dates are to be determined.

Lehman Brothers Inc. will be the underwriter for the offering.

© 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.