Lehman Brothers plans issue of Rapids linked to S&P 500

By Jennifer Chiou

New York, May 11 - Lehman Brothers Holdings Inc. plans to price an issue of 0% senior unsecured notes due June 2008 in the Return-Accelerated Portfolio Debt Securities (Rapids) structure linked to the S&P 500 index, according to a 424B5 filing with the Securities and Exchange Commission.

At maturity, the notes will pay par plus double any gain on the basket. The return will be capped at between $1,160 and $1,200 per note, with the exact cap to be determined at pricing.

If the basket loses up to 10%, payout at maturity will be par. If the basket loses more than 10%, payout at maturity will be par less 1.1111 times any loss over 10%.

Lehman Brothers Inc. will be the underwriter.

© 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.