New Issue: Lehman prices $2.592 million 25% reverse convertibles linked to Fannie Mae

New York, May 29 - Lehman Brothers Holdings Inc. priced $2.592 million of 25% reverse convertible notes due Aug. 30, 2008 linked to Federal National Mortgage Association (Fannie Mae) shares, according to a 424B2 filing with the Securities and Exchange Commission.

Payout at maturity will be par in cash unless Fannie Mae shares fall below the protection price of $18.571, 70% of the initial price of $26.53, during the life of the notes and finishes below the initial price in which case the payout will be Fannie Mae shares equal to $1,000 principal amount divided by the initial price.

Lehman Brothers is the agent.

Issuer:	Lehman Brothers Holdings Inc.
Issue:	Reverse convertible notes
Underlying stock:	Federal National Mortgage Association (Fannie Mae) (Symbol: FNM)
Amount:	$2.592 million
Maturity:	Aug. 30, 2008
Coupon:	25%, payable monthly
Price:	Par
Payout at maturity:	Par in cash unless Fannie Mae stock falls below the protection price of $18.571, 70% of the initial price, and finishes below the initial price, in which case Fannie Mae shares equal to $1,000 principal amount divided by the initial price
Initial price:	$26.53
Protection price:	$18.571, 70% of $26.53
Pricing date:	May 27
Settlement date:	May 30
Agent:	Lehman Brothers
Fees:	2.815%

© 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.