By E. Janene Geiss
Philadelphia, Feb. 28 - Lehman Brothers Holdings Inc. priced a $1.1 million issue of 15.45% annualized reverse exchangeable notes due May 29, 2008 linked to the common stock of Cummins Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
If Cummins stock falls below the knock-in price of $37.38 - 70% of the initial value - during the life of the notes and finishes below its initial price of $53.40, the payout at maturity will be a number of Cummins 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: | Cummins Inc. (NYSE: CMI)
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Amount: | $1,101,000
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Maturity: | May 29, 2008
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Coupon: | 15.45%, payable monthly
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Price: | Par
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Payout at maturity: | If Cummins stock falls below the knock-in price of $37.38 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 share price: | $53.40
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Knock-in price: | $37.38, 70% of $53.40
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Pricing date: | Feb. 26
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Settlement date: | Feb. 29
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Underwriter: | Lehman Brothers Inc.
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Fees: | 1.62%
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