By Susanna Moon
Chicago, May 6 - Lehman Brothers Holdings Inc. priced $1.75 million of 25% annualized reverse exchangeable notes due Aug. 7, 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 - 70% of the initial value - during the life of the notes and finishes below its initial price, 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 (NYSE: FNM)
|
| Amount: | $1,752,000
|
| Maturity: | Aug. 7, 2008
|
| Coupon: | 25%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | If the stock falls below the knock-in price during the life the notes and finishes below its initial value, 33.8983 shares; otherwise, par
|
| Initial share price: | $29.50
|
| Knock-in price: | $20.65, 70% of initial price
|
| Pricing date: | May 2
|
| Settlement date: | May 7
|
| Agent: | Lehman Brothers Inc.
|
| Fees: | 3.095%
|
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