Published on 3/4/2008 in the Prospect News Structured Products Daily.
New Issue: Lehman prices $760,000 semiannual review notes linked to Wachovia, JPMorgan
By Angela McDaniels
Tacoma, Wash., March 4 - Lehman Brothers Holdings Inc. priced $760,000 of 0% semiannual review notes with contingent protection due March 8, 2010 linked to the common stocks of Wachovia Corp. and JPMorgan Chase & Co., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be automatically called at increasing premiums if the closing price of each stock is at or above its initial share price on any of four semiannual review dates.
The redemption amount will be 120% of par if the notes are called on Sept. 3, 2008, 140% of par if called on March 3, 2009, 160% of par if called on Sept. 3, 2009 and 180% of par if called on March 3, 2010.
If the notes are not called, the payout at maturity will be par unless either stock falls below its trigger price - 60% of its initial share price - during the life of the notes, in which case the payout will be a number of shares of the worst-performing stock equal to par divided by the initial share price of that stock or, at JPMorgan's option, the cash equivalent.
Lehman Brothers Inc. is the underwriter.
| Issuer: | Lehman Brothers Holdings Inc.
|
| Issue: | Semiannual review notes with contingent protection
|
| Underlying stocks: | Wachovia Corp. (NYSE: WB) and JPMorgan Chase & Co. (NYSE: JPM)
|
| Amount: | $760,000
|
| Maturity: | March 8, 2010
|
| Coupon: | 0%
|
| Price: | Par
|
| Call: | If closing price of each stock is at or above its initial share price on a review date; payout will be 120% of par if called Sept. 3, 2008, 140% of par if called March 3, 2009, 160% of par if called Sept. 3, 2009 and 180% of par if called March 3, 2010
|
| Payout at maturity: | If either stock falls below trigger price during life of notes, a number of shares of the worst-performing stock equal to par divided by the initial share price of that stock or the cash equivalent; otherwise, par
|
| Initial share prices: | $30.41 for Wachovia; $39.82 for JPMorgan
|
| Trigger prices: | 60% of initial prices; $18.246 for Wachovia; $23.892 for JPMorgan
|
| Pricing date: | March 3
|
| Settlement date: | March 6
|
| Underwriter: | Lehman Brothers Inc.
|
| Fees: | 2.5%
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