By Laura Lutz
Des Moines, Jan. 29 - Lehman Brothers Holdings Inc. priced a $5.89 million issue of 0% buffered annual review notes due Jan. 31, 2011 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
There is a greenshoe for $882,750.
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 11.75% if called Jan. 27, 2009, 23.5% if called Jan. 25, 2010 and 35.25% if called Jan. 26, 2011.
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 is the underwriter.
| Issuer: | Lehman Brothers Holdings Inc.
|
| Issue: | Buffered annual review notes
|
| Underlying index: | S&P 500 index
|
| Amount: | $5,885,000
|
| Greenshoe: | $882,750
|
| Maturity: | Jan. 31, 2011
|
| 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 11.75% if called on Jan. 27, 2009, 23.5% if called Jan. 25, 2010 and 35.25% if called Jan. 26, 2011
|
| Initial level: | 1,330.61
|
| Pricing date: | Jan. 25
|
| Settlement date: | Jan. 30
|
| Underwriter: | Lehman Brothers Inc.
|
| Fees: | 1.25%
|
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