Published on 7/10/2007 in the Prospect News Structured Products Daily.
New Issue: Lehman prices $700,000 17% bearish reverse exchangeables linked to Amazon.com
By Angela McDaniels
Seattle, July 10 - Lehman Brothers Holdings Inc. priced $700,000 of 17% bearish reverse exchangeable notes due July 10, 2008 linked to the common stock of Amazon.com, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
The payout at maturity will be par unless Amazon.com stock advances beyond the trigger price of $89.661 - 130% of the initial share price - during the life of the notes and finishes above the initial share price, in which case the payout will be a cash amount equal to par minus 1% for each 1% share price gain. Lehman may opt to instead pay a number of Amazon.com shares equal to the cash amount divided by the final share price.
Lehman Brothers Inc. is the underwriter.
Issuer: | Lehman Brothers Holdings Inc.
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Issue: | Bearish reverse exchangeable notes
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Underlying stock: | Amazon.com, Inc.
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Amount: | $700,000
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Maturity: | July 10, 2008
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Coupon: | 17%, payable monthly
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Price: | Par
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Payout at maturity: | If Amazon.com stock closes above the trigger price during the life of the notes and finishes above the initial share price, par minus 1% for each 1% share price gain or a number of Amazon.com shares equal to the sum of par minus 1% for each 1% share price gain divided by the final share price; otherwise, par
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Initial share price: | $68.97
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Trigger price: | $89.661, 130% of initial share price
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Pricing date: | July 6
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Settlement date: | July 10
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Underwriter: | Lehman Brothers Inc.
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Fees: | 2.85%
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