By Laura Lutz
Washington, Dec. 21 - Lehman Brothers Holdings Inc. priced a $50 million issue of 0.45% notes due Dec. 27, 2013 linked to the common stock of News Corp., according to a 424B5 filing with the Securities and Exchange Commission.
If the share price of News Corp. stock exceeds the threshold value on Dec. 23, 2013, the final valuation date, 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 threshold value is $23.7193, which is 110.22% of $21.52, the average execution price per share of common stock Lehman Brothers paid to hedge the notes.
The deal includes a $7.5 million greenshoe, exercisable within 13 days of the original issue.
The notes are callable beginning Dec. 19, 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: | News Corp.
|
| Amount: | $50 million
|
| Greenshoe: | $7.5 million
|
| Maturity: | Dec. 27, 2013
|
| Coupon: | 0.45%
|
| Price: | Par
|
| Payout at maturity: | Par plus the stock return if the final share price exceeds the threshold value; otherwise par
|
| Threshold value: | $23.7193, equal to 110.22% of $21.52, the average execution price per share Lehman Brothers paid to hedge the notes
|
| Call feature: | Callable beginning Dec. 19, 2009
|
| Pricing date: | Dec. 21
|
| Settlement date: | Dec. 29
|
| Underwriter: | Lehman Brothers Inc.
|
| Underwriting discount: | 0.13%
|
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