Published on 5/31/2006 in the Prospect News Convertibles Daily.
New Issue: Lehman prices $10 million 3.119% notes linked to Microsoft
By Jennifer Chiou
New York, May 31 - Lehman Brothers Holdings Inc. priced $10 million of 3.119% notes due June 15, 2009 performance-linked to Microsoft Corp. stock, 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 $30.836, which is 130% 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.
Issuer: | Lehman Brothers Holdings Inc.
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Issue: | Performance-linked medium-term senior notes
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Underlying stock: | Microsoft Corp.
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Amount: | $10 million
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Greenshoe: | $1.5 million
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Maturity: | June 15, 2009
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Coupon: | 3.119%
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Price: | Par
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Exchange premium: | 30% (over $23.72 that Lehman paid to hedge the notes)
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Exchange price: | $30.836 (automatic exchange at maturity if more valuable)
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Pricing date: | May 31
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Settlement date: | June 5
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Underwriter: | Lehman Brothers
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