By Laura Lutz
Des Moines, Aug. 14 - Lehman Brothers Holdings Inc. priced a $10 million issue of 1% notes due Aug. 17, 2014 performance linked to Intel Corp. common stock, according to a 424B5 filing with the Securities and Exchange Commission.
The underwriter, Lehman Brothers Inc., has a greenshoe for $1.5 million.
Interest is payable semiannually.
The notes can be converted into stock at the holder's option beginning Aug. 10, 2010.
At maturity or upon conversion, investors will receive the greater of par and par times the final value of the stock divided by the exchange premium of $27.4373, or 114.37% of the price that Lehman paid to hedge the notes.
The payout at maturity may be in cash or stock, at Lehman's option.
| Issuer: | Lehman Brothers Holdings Inc.
|
| Issue: | Performance-linked medium-term senior notes
|
| Underlying stock: | Intel Corp. (Nasdaq: INTC)
|
| Amount: | $10 million
|
| Greenshoe: | $1.5 million
|
| Maturity: | Aug. 17, 2014
|
| Coupon: | 1%, payable semiannually.
|
| Price: | Par
|
| Payout at maturity: | Greater of par and par times the final value of the stock divided by $27.4373
|
| Exchange premium: | 114.37%
|
| Pricing date: | Aug. 10
|
| Settlement date: | Aug. 17
|
| Underwriter: | Lehman Brothers Inc.
|
| Fees: | 0.13%
|
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