Published on 1/31/2008 in the Prospect News Structured Products Daily.
New Issue: Lehman sells $764,000 13.7% reverse exchangeables linked to AIG
By Laura Lutz
Des Moines, Jan. 31 - Lehman Brothers Holdings Inc. priced a $764,000 issue of 13.7% reverse exchangeable notes due April 30, 2008 linked to the common stock of American International Group, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
If AIG stock falls below the knock-in price of $43.696 - 80% of the initial value - during the life of the notes and finishes below its initial price of $54.62, the payout at maturity will be a number of AIG 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: | American International Group, Inc. (Symbol: AIG)
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Amount: | $764,000
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Maturity: | April 30, 2008
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Coupon: | 13.7%, payable monthly
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Price: | Par
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Payout at maturity: | If AIG stock falls below the knock-in price of $43.696 during the life of the notes and finishes below its initial value, a number of shares equal to par divided by the initial share price; otherwise, par
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Initial price: | $54.62
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Knock-in price: | $43.696, 80% of $54.62
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Pricing date: | Jan. 28
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Settlement date: | Jan. 31
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Underwriter: | Lehman Brothers Inc.
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Fees: | 2.48%
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