By Laura Lutz
Des Moines, Feb. 12 - Lehman Brothers Holdings Inc. priced a $1.15 million issue of 16% reverse exchangeable notes due Aug. 13, 2008 linked to the common stock of Peabody Energy Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
If Peabody stock falls below the knock-in price of $37.716 - 70% of the initial value - during the life of the notes and finishes below its initial price of $53.88, the payout at maturity will be a number of Peabody 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: | Peabody Energy Corp. (Symbol: BTU)
|
| Amount: | $1,146,000
|
| Maturity: | Aug. 13, 2008
|
| Coupon: | 16%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | If Peabody stock falls below the knock-in price of $37.716 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 price: | $53.88
|
| Knock-in price: | $37.716, 70% of $53.88
|
| Pricing date: | Feb. 8
|
| Settlement date: | Feb. 13
|
| Underwriter: | Lehman Brothers Inc.
|
| Fees: | 3.195%
|
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