By Jennifer Chiou
New York, April 16 - Lehman Brothers Holdings Inc. priced $4.39 million of 0% buffered semiannual review notes due April 20, 2009 linked to the Financial Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at increasing premiums if the fund level is at or above the call price - 95% of the initial price - on either of two semiannual review dates.
The redemption amount will be par plus 12.2% if the notes are called on the first review date, set for Oct. 14, 2008, and 24.4% if called on the second and final review date, set for April 15, 2009.
If the notes are not called, the payout at maturity will be par unless the fund falls by more than 15%, in which case investors will lose 1% for every 1% decline beyond 15%.
Lehman Brothers Inc. is the underwriter.
| Issuer: | Lehman Brothers Holdings Inc.
|
| Issue: | Buffered semiannual review notes
|
| Underlying fund: | Financial Select Sector SPDR fund
|
| Amount: | $4,385,000
|
| Maturity: | April 20, 2009
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par unless the fund falls by more than 15%, in which case investors will lose 1% for every 1% decline beyond 15%
|
| Callable: | At increasing premiums if fund is at or above the call price on a review date; redeemable at par plus 12.2% if called on Oct. 14, 2008 and par plus 24.4% if called on April 15, 2009
|
| Initial share price: | $24.54
|
| Call price: | $23.31, 95% of initial share price
|
| Pricing date: | April 14
|
| Settlement date: | April 17
|
| Underwriter: | Lehman Brothers Inc.
|
| Fees: | 1.5%
|
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