Published on 4/16/2008 in the Prospect News Structured Products Daily.
New Issue: Lehman prices $1.1 million 11% notes linked to Kimberly-Clark, Procter & Gamble
By Angela McDaniels
Tacoma, Wash., April 16 - Lehman Brothers Holdings Inc. priced $1.1 million of reverse exchangeable notes due Oct. 18, 2008 linked to the common stocks of Kimberly-Clark Corp. and Procter & Gamble Co., according to a 424B2 filing with the Securities and Exchange Commission.
The six-month months will pay 5.5% for an annualized coupon of 11%. Interest is payable monthly.
If either stock closes below its trigger price - 85% of its initial share price - during the life of the notes and the final share price of either stock is less than its initial share price, the payout at maturity will be a number of shares of the worst-performing stock equal to $1,000 divided by that stock's initial share price or, at Lehman's option, the equivalent value in cash.
Otherwise, the payout will be par.
Lehman Brothers Inc. is the underwriter.
| Issuer: | Lehman Brothers Holdings Inc.
|
| Issue: | Reverse exchangeable notes
|
| Underlying stocks: | Kimberly-Clark Corp. (Symbol: KMB) and Procter & Gamble Co. (Symbol: PG)
|
| Amount: | $1,102,000
|
| Maturity: | Oct. 18, 2008
|
| Coupon: | 11%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | If either stock closes below its trigger price during the life of the notes and the final price of either stock is less than its initial price, a number of shares of the worst-performing stock equal to its exchange ratio or the equivalent value in cash; otherwise, par
|
| Initial share prices: | $63.86 for Kimberly Clark, $70.23 for Procter & Gamble
|
| Trigger prices: | $54.281 for Kimberly Clark, $59.6955 for Procter & Gamble; 85% of initial share price
|
| Exchange ratios: | 15.65925 for Kimberly Clark, 14.23893 for Procter & Gamble
|
| Pricing date: | April 15
|
| Settlement date: | April 18
|
| Underwriter: | Lehman Brothers Inc.
|
| Fees: | 1%
|
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