By Laura Lutz
Des Moines, March 13 - Lehman Brothers Holdings Inc. priced a $1 million issue of 25.75% annualized reverse exchangeable notes due June 16, 2008 linked to the common stock of Commercial Metals Co., according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable monthly.
If Commercial Metals stock falls below the knock-in price of $21.825 - 75% of the initial value - during the life of the notes and finishes below its initial price of $29.10, the payout at maturity will be a number of Commercial Metals shares equal to par divided by the initial share price.
Otherwise, the payout will be par.
Lehman Brothers Inc. is the agent.
| Issuer: | Lehman Brothers Holdings Inc.
|
| Issue: | Reverse exchangeable notes
|
| Underlying stock: | Commercial Metals Co. (NYSE: CMC)
|
| Amount: | $1 million
|
| Maturity: | June 16, 2008
|
| Coupon: | 25.75%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | If Commercial Metals stock falls below the knock-in price of $21.825 during the life 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: | $29.10
|
| Knock-in price: | $21.825, 75% of $29.10
|
| Pricing date: | March 11
|
| Settlement date: | March 14
|
| Agent: | Lehman Brothers Inc.
|
| Fees: | 1.25%
|
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