Published on 9/9/2008 in the Prospect News Structured Products Daily.
New Issue: Lehman prices $803,000 10% reverse exchangeables linked to three stocks
By Angela McDaniels
Tacoma, Wash., Sept. 9 - Lehman Brothers Holdings Inc. priced $803,000 of reverse exchangeable notes due March 11, 2009 linked to the common stocks of Johnson & Johnson, Coca-Cola Co. and Procter & Gamble Co., according to a 424B2 filing with the Securities and Exchange Commission.
The six-month notes will pay 5% for an annualized coupon of 10%. Interest is payable monthly.
If any stock falls by more than 20% during the life of the notes and any stock finishes below 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 the initial share price of that stock or, at Lehman's option, a cash amount equal to the value of those shares. Otherwise, the payout will be par.
Lehman Brothers Inc. is the underwriter.
| Issuer: | Lehman Brothers Holdings Inc.
|
| Issue: | Reverse exchangeable notes
|
| Underlying stocks: | Johnson & Johnson, Coca-Cola Co. and Procter & Gamble Co.
|
| Amount: | $803,000
|
| Maturity: | March 11, 2009
|
| Coupon: | 10%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | If any stock falls below its trigger price during the life of the notes and the final share price of any stock is below its initial share price, a number of shares of the worst-performing stock equal to its exchange ratio or the value of those shares in cash; otherwise, par
|
| Initial share prices: | $72.22 for Johnson & Johnson, $53.38 for Coca-Cola and $72.37 for Procter & Gamble
|
| Trigger prices: | $57.776 for Johnson & Johnson, $42.704 for Coca-Cola and $57.896 for Procter & Gamble; 80% of initial price
|
| Exchange ratios: | 13.84658 for Johnson & Johnson, 18.73361 for Coca-Cola and 13.81788 for Procter & Gamble
|
| Pricing date: | Sept. 8
|
| Settlement date: | Sept. 11
|
| Underwriter: | Lehman Brothers Inc.
|
| Fees: | 3.05%
|
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