Lehman to issue Wedding Cake principal-protected notes linked to light sweet crude oil

By E. Janene Geiss

Philadelphia, Nov. 16 - Lehman Brothers Holdings Inc. plans to price an issue of 100% principal-protected "Wedding Cake" notes linked to the price of light sweet crude oil, according to an FWP filing with the Securities and Exchange Commission.

At maturity, investors will receive par plus 18% if at all times during the life of the notes crude oil remains within the narrowest barrier range, expected to be 90% to 110% of its initial value, par plus 11% if crude oil remains with the middle barrier range, expected to be 85% to 115% of its initial value, par plus 5% if crude oil remains within the broadest barrier range, expected to be 75% to 125% of its initial value. If crude oil moves outside that range, the payout at maturity will be par. The exact barrier levels will be set at pricing.

The notes will not pay interest.

The maturity is expected to be Nov. 30, 2007.

Pricing is slated for Nov. 22 and settlement is expected to be Nov. 28.

Lehman Brothers Inc. will be the underwriter for the offering.

© 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.