Lehman to issue protected gold-linked dual participation notes

By E. Janene Geiss

Philadelphia, May 7 - Lehman Brothers Holdings Inc. plans to price 100% principal-protected dual participation notes due May 30, 2013 linked to the price of gold, according to an FWP filing with the Securities and Exchange Commission.

Payout at maturity will be par plus the maximum upside return, expected to be 32% to 48%, if the price of gold increases beyond 80% of its initial price.

If the price of gold increases by less than 80%, the payout will be par plus an upside participation rate expected to be 40% to 60%.

If the price declines, investors will receive par plus a downside rate expected to be 70% to 90% of the absolute value of the return.

The exact return rates will be determined at pricing.

The notes are expected to price May 23 and settle May 30.

Lehman Brothers Inc. will be the underwriter.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.