By Angela McDaniels
Seattle, Dec. 6 - Lehman Brothers Holdings Inc. said the threshold value for its $15 million issue of 0% notes due Dec. 11, 2011 linked to the common stock of McDonald's Corp. will be $42.53.
The company clarified the threshold price in a 424B5 report filed with the Securities and Exchange Commission on Wednesday.
If the final price share price of McDonald's stock exceeds the threshold value - 100% of the average execution price per share of common stock Lehman Brothers paid to hedge the notes - investors will receive par plus the return on the stock, payable in stock or cash at Lehman's option. Otherwise, investors will receive par.
The notes are callable beginning Dec. 4, 2009. The redemption amount will be calculated in the same manner as the payout at maturity.
| Issuer: | Lehman Brothers Holdings Inc.
|
| Issue: | Medium-term notes, series I
|
| Underlying stock: | McDonald's Corp.
|
| Amount: | $15 million
|
| Greenshoe: | $2.25 million
|
| Maturity: | Dec. 11, 2011
|
| Coupon: | 0%
|
| Price: | 104.625%
|
| Payout at maturity: | Par plus the stock return if the final share price exceeds the threshold value; otherwise par
|
| Threshold value: | $42.53
|
| Callable: | Beginning Dec. 4, 2009
|
| Pricing date: | Dec. 4
|
| Settlement date: | Dec. 11
|
| Underwriter: | Lehman Brothers Inc.
|
| Underwriting discount: | 0.25%
|
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