By Laura Lutz
Des Moines, Jan. 29 - Lehman Brothers Holdings Inc. priced a $1.04 million issue of 10% reverse exchangeable notes due April 30, 2008 linked to the common stock of CVS Caremark Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
If CVS Caremark stock falls below the knock-in price of $28.448 - 80% of the initial value - during the life of the notes and finishes below its initial price of $35.56, the payout at maturity will be a number of CVS Caremark shares equal to par divided by the initial share price.
Otherwise, the payout will be par.
Lehman Brothers Inc. is the underwriter.
Issuer: | Lehman Brothers Holdings Inc.
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Issue: | Reverse exchangeable notes
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Underlying stock: | CVS Caremark Corp. (NYSE: CVS)
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Amount: | $1,035,000
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Maturity: | April 30, 2008
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Coupon: | 10%, payable monthly
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Price: | Par
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Payout at maturity: | If CVS Caremark stock falls below the knock-in price during the life of the notes and finishes below its initial share price, a number of shares equal to par divided by the initial share price; otherwise, par
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Initial share price: | $35.56
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Knock-in price: | $28.448, 80% of $35.56
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Pricing date: | Jan. 25
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Settlement date: | Jan. 30
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Underwriter: | Lehman Brothers Inc.
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Fees: | 1.475%
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