By Laura Lutz
Des Moines, Aug. 30 - Lehman Brothers Holdings Inc. priced a $1.59 million issue of 0% buffered annual review notes due Aug. 31, 2010 linked to the Dow Jones Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
There is an over-allotment option for $238,500.
The notes will be automatically called at increasing premiums if the index level is at or above the initial index level on any of the three annual review dates.
The redemption amount will be par plus a call premium of 13.9% if called Aug. 29, 2008, 27.8% if called Aug. 28, 2009 and 41.7% if called Aug. 26, 2010.
If the notes are not called, the payout at maturity will be par if the ending index level is at least 90% of the initial index level. Investors will lose 1.1111% for each 1% decline beyond 10%.
Lehman Brothers Inc. is the underwriter.
| Issuer: | Lehman Brothers Holdings Inc.
|
| Issue: | Buffered annual review notes
|
| Underlying index: | Dow Jones Euro Stoxx 50 index
|
| Amount: | $1.59 million
|
| Greenshoe: | $238,500
|
| Maturity: | Aug. 31, 2010
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par if the index loses up to 10%; investors lose 1.1111% for each 1% decline beyond 10%
|
| Callable: | At par plus a call premium of 13.9% if called on Aug. 29, 2008, 27.8% if called Aug. 28, 2009 and 41.7% if called Aug. 26, 2010
|
| Initial level: | 4,170.68
|
| Pricing date: | Aug. 28
|
| Settlement date: | Aug. 31
|
| Underwriter: | Lehman Brothers Inc.
|
| Fees: | 1.5%
|
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