Published on 1/18/2008 in the Prospect News Structured Products Daily.
New Issue: Lehman prices $500,000 16% reverse exchangeables linked to SunPower
By Susanna Moon
Chicago, Jan. 18 - Lehman Brothers Holdings Inc. priced $500,000 of 16% annualized reverse exchangeable notes due April 22, 2008 linked to the common stock of SunPower Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
The payout at maturity will be par unless SunPower shares fall by more than 50% during the life of the notes and the final share price is less than the initial share price, in which case the payout will be a number of SunPower shares equal to $1,000 divided by the initial share price or, at Lehman's option, the equivalent cash value.
Lehman Brothers Inc. is the underwriter.
| Issuer: | Lehman Brothers Holdings Inc.
|
| Issue: | Reverse exchangeable notes
|
| Underlying stock: | SunPower Corp. (Nasdaq: SPWR)
|
| Amount: | $500,000
|
| Maturity: | April 22, 2008
|
| Coupon: | 16%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | If SunPower shares close below the trigger price during the life of the notes and finish below the initial share price, 10.9135 SunPower shares or equivalent cash value; otherwise, par
|
| Initial share price: | $91.63
|
| Trigger price: | $45.815, 50% of initial share price
|
| Pricing date: | Jan. 16
|
| Settlement date: | Jan. 22
|
| Underwriter: | Lehman Brothers Inc.
|
| Fees: | 1.53%
|
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