By Angela McDaniels
Seattle, Oct. 6 - Lehman Brothers Holdings Inc. priced a $26 million issue of 0.25% notes due Oct. 12, 2011 linked to the iShares S&P Global Financials Sector Index Fund, according to a 424B5 filing with the Securities and Exchange Commission.
Payout at maturity will be par plus any percentage increase over the threshold price of $88.5911, which is 104.52% of the price Lehman paid to hedge the notes. The payout will have a floor of par and will be payable in cash or stock at Lehman's option.
The notes are callable beginning Oct. 4, 2009. The redemption amount will be calculated in the same manner as the payout at maturity.
| Issuer: | Lehman Brothers Holdings Inc.
|
| Issue: | Performance-linked medium-term senior notes, series I
|
| Underlying asset: | iShares S&P Global Financials Sector Index Fund
|
| Amount: | $26 million
|
| Greenshoe: | $3.9 million
|
| Maturity: | Oct. 12, 2011
|
| Coupon: | 0.25%
|
| Price: | Par
|
| Payout at maturity: | Par plus any percentage increase beyond 104.52%; floor of par
|
| Exchange premium: | 4.52% (over $84.76 that Lehman paid to hedge the notes)
|
| Exchange price: | $88.5911 (automatic exchange at maturity if more valuable)
|
| Callable: | Beginning Oct. 4, 2009
|
| Pricing date: | Oct. 5
|
| Settlement date: | Oct. 12
|
| Underwriter: | Lehman Brothers Inc.
|
| Underwriting discount: | 25 basis points
|
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