By E. Janene Geiss
Philadelphia, Aug. 28 - Lehman Brothers Holdings Inc. priced an additional $100,000 of zero-coupon 100% principal-protected dual participation notes due Aug. 22, 2011 linked to the price of light sweet crude oil, according to an FWP filing with the Securities and Exchange Commission.
The company priced $600,000 of the notes on Aug. 8, another $1.1 million on Aug. 13, another $1.15 million on Aug. 21 and a further $300,000 on Aug. 22. The total issue size is now $3.25 million.
If the price of crude oil remains within the preset range throughout the life of the notes, the payout at maturity will be par plus 150% of the absolute value of the final crude oil return.
If the price of crude oil is ever outside the range, the payout will be par plus 40% of the absolute value of the final crude oil return.
The lower and upper barriers of the crude oil range are 50% and 150% of the initial crude oil price, respectively.
Lehman Brothers Inc. is the underwriter.
| Issuer: | Lehman Brothers Holdings Inc.
|
| Issue: | 100% principal-protected dual participation notes
|
| Underlying commodity: | Light sweet crude oil
|
| Amount: | $3,245,000, upsized from $2,845,000
|
| Maturity: | Aug. 22, 2011
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par plus 150% of the absolute value of the crude oil return if crude oil remains within the upper and lower barriers throughout the life of the notes; par plus 40% of the absolute value of the crude oil return if crude oil does not stay within the barriers
|
| Initial crude oil price: | $115.20 per barrel
|
| Lower barrier: | $57.60, 50% of initial price
|
| Upper barrier: | $172.80, 150% of initial price
|
| Pricing date: | Aug. 8 for first tranche; Aug. 13 for second tranche; Aug. 21 for third tranche; Aug. 22 for fourth tranche; Aug. 28 for fifth tranche
|
| Settlement date: | Aug. 27, for first four tranches, Sept. 3 for fifth
|
| Underwriter: | Lehman Brothers Inc.
|
| Fees: | 2%
|
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