New Issue: Lehman prices $1 million 14.55% reverse exchangeables linked to Ternium

By Susanna Moon

Chicago, Aug. 24 - Lehman Brothers Holdings Inc. priced a $1 million issue of 14.55% annualized reverse exchangeable notes due Feb. 27, 2008 linked to American Depositary Receipts representing shares of Ternium SA, according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

The payout at maturity will be par unless the ADRs fall by more than 30% during the life of the notes and finishes below the initial price, in which case the payout will be a number of Ternium ADRs equal to $1,000 divided by the initial price or, at the bank's option, the equivalent cash value.

Lehman Brothers Inc. is the agent.

Issuer:	Lehman Brothers Holdings Inc.
Issue:	Reverse exchangeable notes
Underlying security:	American Depositary Receipts representing shares of Ternium SA (NYSE: TX)
Amount:	$1 million
Maturity:	Feb. 27, 2008
Coupon:	14.55% annualized, payable monthly
Price:	Par
Payout at maturity:	If the ADRs fall below the barrier price during the life of the notes and finish below the initial price, a number of ADRs equal to $1,000 divided by the initial price or the equivalent cash value; otherwise, par
Initial share price:	$28.12
Trigger price:	$19.684, 70% of initial share price
Pricing date:	Aug. 22
Settlement date:	Aug. 27
Agent:	Lehman Brothers Inc.
Fees:	1.75%

© 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.