Lehman plans principal-protected notes linked to 10 commodities, two indexes

By Angela McDaniels

Tacoma, Wash., Feb. 26 - Lehman Brothers Holdings Inc. plans to price zero-coupon principal-protected notes due March 28, 2012 linked to a basket of 10 commodities and two commodity indexes, according to an FWP filing with the Securities and Exchange Commission.

The basket includes the S&P GSCI Agriculture Index Excess Return with a 20% weight; light sweet crude oil with a 15% weight; the S&P GSCI Livestock Index Excess Return and Henry Hub natural gas, each with a 10% weight; high-grade primary aluminum and copper - grade A, each with a 7% weight; primary nickel with a 6% weight; and reformulated gasoline blendstock for oxygen blending, No. 2 fuel heating oil, special high-grade zinc, standard lead and gold, each with a 5% weight.

The payout at maturity will be par plus any basket gain multiplied by the participation rate, which is expected to be 120% to 145% and will be determined at pricing. Investors will receive at least par.

The notes will price on March 20 and settle on March 28.

Lehman Brothers Inc. will be the underwriter.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.