By Susanna Moon
Chicago, Dec. 27 - Lehman Brothers Holdings Inc. priced a $2.52 million issue of 17.5% annualized reverse exchangeable notes due March 31, 2008 linked to the common stock of Target Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
If Target stock falls below the knock-in price - 80% of the initial value - during the life of the notes and finishes below its initial share price, the payout at maturity will be a number of Target 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.
|
| Issue: | Reverse exchangeable notes
|
| Underlying stock: | Target Corp. (NYSE: TGT)
|
| Amount: | $2,521,000
|
| Maturity: | March 31, 2008
|
| Coupon: | 17.5%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | If Target stock falls below the knock-in price 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
|
| Initial share price: | $50.68
|
| Knock-in price: | $40.544, or 80% of initial price
|
| Pricing date: | Dec. 21
|
| Settlement date: | Dec. 31
|
| Underwriter: | Lehman Brothers Inc.
|
| Fees: | 2.46%
|
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