By Susanna Moon
Chicago, Feb. 15 - Lehman Brothers Holdings Inc. priced $12.98 million of 0% semiannual review notes with contingent protection due Feb. 20, 2009 linked to the Financial Select Sector SPDR Fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at increasing premiums if the index fund level is at or above the call price on either of two semiannual review dates.
The redemption amount will be par plus 11.25% if the notes are called on the first review date, set for Aug. 13, and 22.5% if called on the second and final review date, set for Feb. 17, 2009.
If the notes are not called, the payout at maturity will be par unless the index fund falls by more than 20%, in which case investors will lose 1% for every 1% decline beyond 20%.
Lehman Brothers Inc. will be the agent.
| Issuer: | Lehman Brothers Holdings Inc.
|
| Issue: | Semiannual review notes with contingent protection
|
| Underlying index: | Financial Select Sector SPDR fund
|
| Amount: | $12.98 million
|
| Maturity: | Feb. 20, 2009
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par unless the index fund falls by more than 20%, in which case investors will lose 1% for every 1% decline beyond 20%
|
| Callable: | At increasing premiums if fund is at or above the initial share price; redeemable at par plus 11.25% if called on Aug. 13 and 22.5% if called on Feb. 17, 2009
|
| Initial share price: | $27.15
|
| Trigger price: | $21.72, 80% of initial share price
|
| Pricing date: | Feb. 13
|
| Settlement date: | Feb. 19
|
| Underwriter: | Lehman Brothers Inc.
|
| Fees: | 1.5%
|
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