By Angela McDaniels
Seattle, April 23 - Lehman Brothers Holdings Inc. priced a $1 million issue of reverse exchangeable notes due Oct. 24, 2007 linked to the common stock of First BanCorp., according to a 424B5 filing with the Securities and Exchange Commission.
The six-month notes will pay 6.25% for an annualized rate of 12.5%. Interest is payable monthly.
The payout at maturity will be par unless First BanCorp stock falls below the trigger price of $9.525 and finishes below the initial share price of $12.70, in which case the payout will be a number of First BanCorp shares equal to $1,000 divided by the initial share price or, at Lehman's option, the equivalent cash value.
There is a $150,000 over-allotment option.
Lehman Brothers Inc. is the underwriter.
Issuer: | Lehman Brothers Holdings Inc.
|
Issue: | Reverse exchangeable notes
|
Underlying stock: | First BanCorp
|
Amount: | $1 million
|
Greenshoe: | $150,000
|
Maturity: | Oct. 24, 2007
|
Coupon: | 12.5%, payable monthly
|
Price: | Par
|
Payout at maturity: | If First BanCorp stock falls below the trigger price during the life of the notes and finishes below the initial share price, 78.74016 First BanCorp shares or the equivalent cash value; otherwise, par
|
Initial share price: | $12.70
|
Trigger price: | $9.525, 75% of initial share price
|
Pricing date: | April 19
|
Settlement date: | April 24
|
Underwriter: | Lehman Brothers Inc.
|
Underwriting discount: | 2%
|
© 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.