By Laura Lutz
Des Moines, April 9 - Lehman Brothers Holdings Inc. priced a $1.22 million issue of 18.7% annualized reverse exchangeable notes due Oct. 14, 2008 linked to the common stock of Allegheny Technologies Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable monthly.
If Allegheny stock falls below the knock-in price of $52.7215 - 65% of the initial value - during the life of the notes and finishes below its initial price of $81.11, the payout at maturity will be a number of Allegheny 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: | Allegheny Technologies Inc. (NYSE: ATI)
|
| Amount: | $1,215,000
|
| Maturity: | Oct. 14, 2008
|
| Coupon: | 18.7%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | If Allegheny stock falls below the knock-in price of $52.7215 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: | $81.11
|
| Knock-in price: | $52.7215, 65% of $81.11
|
| Pricing date: | April 9
|
| Settlement date: | April 14
|
| Agent: | Lehman Brothers Inc.
|
| Fees: | 1.75%
|
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