Published on 5/15/2008 in the Prospect News Structured Products Daily.
New Issue: Lehman prices $6.96 million return optimization securities linked to 10 stocks
By Angela McDaniels
Tacoma, Wash., May 15 - Lehman Brothers Holdings Inc. priced $6.96 million of 0% return optimization securities with partial protection due May 19, 2009 linked to a basket of common stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The equally weighted basket includes Schlumberger Ltd., Wal-Mart Stores, Inc., Procter & Gamble Co., Nike, Inc., Walt Disney Co., Thermo Fisher Scientific Inc., General Electric Co., Oracle Corp., 3M Co. and Intel Corp.
The payout at maturity will be par of $10 plus the sum of the weighted reference returns of the 10 stocks.
For each stock with a positive return, the reference return will be 200% of that's stock's return, subject to a maximum gain of 18.5%.
For each stock with a return of between 0% and negative 10%, the reference return will be 0%.
For each stock with a return of less than negative 10%, the reference return will be that stock's return plus 10%.
UBS Financial Services Inc. and Lehman Brothers Inc. are the underwriters.
| Issuer: | Lehman Brothers Holdings Inc.
|
| Issue: | Return optimization securities
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| Underlying stocks: | Schlumberger Ltd. (Symbol: SLB), Wal-Mart Stores, Inc. (Symbol: WMT), Procter & Gamble Co. (Symbol: PG), Nike, Inc. (Symbol: NKE), Walt Disney Co. (Symbol: DIS), Thermo Fisher Scientific Inc. (Symbol: TMO), General Electric Co. (Symbol: GE), Oracle Corp. (Symbol: ORCL), 3M Co. (Symbol: MMM) and Intel Corp. (Symbol: INTC)
|
| Amount: | $6,958,000
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| Maturity: | May 19, 2009
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| Coupon: | 0%
|
| Price: | Par of $10
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| Payout at maturity: | Par plus the sum of the 10 stocks' weighted reference returns
|
| Reference returns: | For stocks with a positive return, 200% of the return, subject to a maximum gain of 18.5%; for stocks with a return of between 0% and negative 10%, 0%; for stocks with a return of less than negative 10%, the return plus 10%
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| Pricing date: | May 13
|
| Settlement date: | May 16
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| Underwriters: | UBS Financial Services Inc. and Lehman Brothers Inc.
|
| Fees: | 1.25%
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