By Angela McDaniels
Seattle, July 23 - Lehman Brothers Holdings Inc. priced a $1.9 million issue of reverse exchangeable notes due Oct. 24, 2007 linked to the common stock of ConocoPhillips, according to a 424B2 filing with the Securities and Exchange Commission.
The three-month notes will pay 2.9375% for an annualized rate of 11.75%. Interest is payable monthly.
The payout at maturity will be par unless ConocoPhillips stock falls below the trigger price of $74.256 during the life of the notes and finishes below the initial share price of $87.36, in which case the payout will be a number of ConocoPhillips shares equal to $1,000 divided by the initial share price or, at Lehman's option, the equivalent cash value.
Lehman Brothers Inc. is the underwriter.
| Issuer: | Lehman Brothers Holdings Inc.
|
| Issue: | Reverse exchangeable notes
|
| Underlying stock: | ConocoPhillips
|
| Amount: | $1.9 million
|
| Maturity: | Oct. 24, 2007
|
| Coupon: | 11.75%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | If ConocoPhillips stock falls below the trigger price during the life of the notes and finishes below the initial share price, 11.44689 ConocoPhillips shares or equivalent cash value; otherwise, par
|
| Initial share price: | $87.36
|
| Trigger price: | $74.256, 85% of initial share price
|
| Pricing date: | July 19
|
| Settlement date: | July 24
|
| Underwriter: | Lehman Brothers Inc.
|
| Fees: | 1.71%
|
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