By Laura Lutz
Des Moines, Sept. 17 - Lehman Brothers Holdings Inc. priced $14 million of autocallable optimization securities with contingent protection due Sept. 19, 2008 linked to the S&P 500 Financials index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at increasing premiums if the closing level of the index is above its initial level on any quarterly observation date.
Investors will receive 105.6% of par if the notes are called on Dec. 14, 111.2% of par if called on March 14, 116.8% of par if called on June 16, 2008 and 122.4% of par if called on Sept. 16, 2008.
If, during the life of the notes, the index has ever closed below the trigger level - 80% of its initial level - the payout at maturity will be par plus the index return. Otherwise, the payout will be par.
UBS Financial Services Inc. and Lehman Brothers Inc. are the agents.
| Issuer: | Lehman Brothers Holdings Inc.
|
| Issue: | Autocallable optimization securities with contingent protection
|
| Underlying index: | S&P 500 Financials
|
| Amount: | $13,997,350
|
| Maturity: | Sept. 19, 2008
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If the index closes below trigger level during the life of the notes, par plus index return; otherwise, par
|
| Call: | Automatically called if index is above initial level on any observation date; at 105.6% of par if called on Dec. 14; at 111.2% of par on March 14; at 116.8% of par on June 16, 2008; at 122.4% of par on Sept. 16, 2008
|
| Initial level: | 452.38
|
| Trigger level: | 361.90, 80% of initial level
|
| Pricing date: | Sept. 13
|
| Settlement date: | Sept. 18
|
| Agents: | UBS Financial Services Inc., Lehman Brothers Inc.
|
| Fees: | 1.25%
|
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