By Jennifer Chiou
New York, June 14 - Lehman Brothers Holdings Inc. priced a $1.589 million issue of 14% annualized reverse exchangeable notes due Dec. 29, 2007 linked to the common stock of Frontline Ltd., according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable monthly.
Payout at maturity will be par unless Frontline stock falls below the knock-in price of $31.976 - 70% of the initial share price - during the life of the notes and finishes below its initial share price of $45.68, in which case the payout will be a number of Frontline shares equal to $1,000 divided by the initial share price.
Lehman Brothers is the underwriter.
| Issuer: | Lehman Brothers Holdings Inc.
|
| Issue: | Reverse exchangeable notes
|
| Underlying stock: | Frontline Ltd.
|
| Amount: | $1.589 million
|
| Maturity: | Dec. 29, 2007
|
| Coupon: | 14% annualized, payable monthly
|
| Price: | Par
|
| Payout at maturity: | Par unless Frontline stock falls below the knock-in price of $31.976 during the life the notes and finishes below its initial share price, in which case payout will be 21.891 Frontline shares
|
| Initial share price: | $45.68
|
| Knock-in price: | $31.976, 70% of $45.68
|
| Pricing date: | June 21
|
| Settlement date: | June 29
|
| Underwriter: | Lehman Brothers
|
| Fees: | 2.25%
|
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