Published on 3/27/2008 in the Prospect News Structured Products Daily.
New Issue: Lehman Brothers prices $10.87 million performance securities linked to index basket
By Laura Lutz
Des Moines, March 27 - Lehman Brothers Holdings Inc. priced a $10.87 million issue of 0% performance securities with partial protection due March 28, 2013 linked to an index basket, according to a 424B2 filing with the Securities and Exchange Commission.
The basket will consist of the S&P 500 index with a 20% weight, the Dow Jones Euro Stoxx 50 index with a 20% weight, the FTSE index with a 20% weight, the Nikkei 225 index with a 10% weight, the MSCI Emerging Markets index with a 10% weight, the Hang Seng China Enterprises index with a 5% weight, the Kospi 200 index with a 5% weight, the MSCI Taiwan index with a 5% weight and the MSCI Singapore Free index with a 5% weight.
If the final index level is greater than or equal to the initial level, the payout at maturity will be par plus 124.2% of the return on the index.
If the index declines by up to 25%, the payout will be par. Investors will lose 1% for each 1% that the index declines beyond 25%.
UBS Financial Services Inc. and Lehman Brothers Inc. are the underwriters.
| Issuer: | Lehman Brothers Holdings Inc.
|
| Issue: | Performance securities with partial protection
|
| Amount: | $10,865,000
|
| Underlying indexes: | S&P 500 with 20% weight, Dow Jones Euro Stoxx 50 with 20% weight, FTSE with 20% weight, Nikkei 225 with 10% weight, MSCI Emerging Markets with 10% weight, Hang Seng China Enterprises with 5% weight, Kospi 200 with 5% weight, MSCI Taiwan with 5% weight and MSCI Singapore Free with 5% weight
|
| Maturity: | March 28, 2013
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If final index level is at least initial level, par plus 124.2 % of return on index; par if index loses up to 25%; share in losses beyond 25%
|
| Pricing date: | March 25
|
| Settlement date: | March 27
|
| Underwriters: | UBS Financial Services Inc., Lehman Brothers Inc.
|
| Fees: | 3.5%
|
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