By Laura Lutz
Des Moines, March 28 - Lehman Brothers Holdings Inc. priced a $259,000 issue of 23% reverse exchangeable notes due Sept. 30, 2008 linked to the common stock of Fannie Mae, according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable monthly.
If Fannie Mae stock falls below the knock-in price of $17.55 - 60% of the initial value - during the life of the notes and finishes below its initial price of $29.25, the payout at maturity will be a number of Fannie Mae shares equal to par divided by the initial share price.
Otherwise, the payout will be par.
Lehman Brothers Inc. is the agent.
| Issuer: | Lehman Brothers Holdings Inc.
|
| Issue: | Reverse exchangeable notes
|
| Underlying stock: | Fannie Mae (Symbol: FNM)
|
| Amount: | $259,000
|
| Maturity: | Sept. 30, 2008
|
| Coupon: | 23%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | If Fannie Mae stock falls below the knock-in price of $17.55 during the life the notes and finishes below its initial value, a number of shares equal to par divided by the initial share price; otherwise, par
|
| Initial price: | $29.25
|
| Knock-in price: | $17.55, 60% of $29.25
|
| Pricing date: | March 26
|
| Settlement date: | March 31
|
| Agent: | Lehman Brothers Inc.
|
| Fees: | 3.39%
|
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