Published on 8/14/2007 in the Prospect News Structured Products Daily.
New Issue: Lehman prices $1 million 13.8% reverse exchangeables linked to Alcoa
By Susanna Moon
Chicago, Aug. 14 - Lehman Brothers Holdings Inc. priced a $1,028,000 issue of 13.8% reverse exchangeable notes due Aug. 16, 2008 linked to the common stock of Alcoa Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The payout at maturity will be par unless the stock falls by more than 35% during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Alcoa shares equal to $1,000 divided by the initial share price or, at the bank's option, the equivalent cash value.
Lehman Brothers Inc. is the agent.
Issuer: | Lehman Brothers Holdings Inc.
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Issue: | Reverse exchangeable notes
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Underlying stock: | Alcoa Inc. (NYSE: AA)
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Amount: | $1,028,000
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Maturity: | Aug. 16, 2008
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Coupon: | 13.8%
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Price: | Par
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Payout at maturity: | If the stock falls below the trigger price during the life of the notes and finishes below the initial share price, a number of shares equal to $1,000 divided by the initial price or the equivalent cash value; otherwise, par
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Initial share price: | $35.54
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Trigger price: | $23.101, 65% of initial share price
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Pricing date: | Aug. 13
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Settlement date: | Aug. 16
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Agent: | Lehman Brothers Inc.
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Fees: | 2.4%
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