Lehman prices $5.5 million three-basket deal; Eksportfinans sells $38.93 million EAFE notes

By LLuvia Mares

New York, Oct. 9 - Lehman Brothers Holdings Inc. led structured products news Tuesday with the announcement of a $5.5 million issue of zero-coupon principal-protected foreign exchange notes due Oct. 13, 2009 linked to the best of three baskets of currencies.

At maturity, investors will receive par plus 150% of the greatest of the three basket returns. If none of the baskets appreciates against the dollar, investors will receive par.

The first basket includes the Brazilian real with a 33.34% weight, the Argentine peso with a 33.33% weight and the Mexican peso with a 33.33% weight, all versus the dollar.

The second basket includes equal weights (25%) of the Israeli shekel, Hungarian forint, Turkish lira and the Russian ruble, all versus the dollar.

The third basket includes equal weights (25%) of the Indonesian rupiah, Indian rupee, Malaysian ringgit and the Singapore dollar, all versus the dollar.

Lehman Brothers Inc. will be the underwriter.

Eksportfinans prices EAFE-linked notes

One of Tuesday's larger products was printed by Eksportfinans ASA, which priced $38.93 million of 0% enhanced participation notes due May 19, 2010 linked to the MSCI EAFE index via Goldman, Sachs & Co.

If the final index level is greater than the initial index level, investors will receive par plus 125% of the index gain.

If the index stays at 80% of its initial value or higher, the payout will be par. Investors will be fully exposed to any decline in the index beyond 80%.

Eksportfinans prices index basket notes

In a similar deal, Eksportfinans ASA also priced $37.15 million of zero-coupon capped principal-protected notes due May 19, 2010 linked to an index basket via Goldman, Sachs & Co.

The basket consists of the Dow Jones Euro Stoxx 50 index with a 34% weight, the FTSE 100 index with a 30% weight, the Topix index with a 27% weight and the Swiss Market index with a 9% weight.

The payout at maturity will be 97% of par plus any gain on the basket, capped at a payout equal to 135% of par.

Investors will receive at least 97% of par.

Lehman to price 18.7% notes on Under Armour

Lehman Brothers Holdings Inc. plans to price reverse exchangeable notes due April 30, 2008 linked to the common stock of Under Armour, Inc., according to an FWP filing with the Securities and Exchange Commission.

The six-month notes will pay 9.35% for an annualized rate of 18.7%. Interest will be payable monthly.

The payout at maturity will be par unless Under Armour stock falls by more than 30% during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Under Armour shares equal to $1,000 divided by the initial share price or, at Lehman's option, the equivalent cash value.

The notes will price on Oct. 26 and settle on Oct. 31.

Lehman Brothers Inc. will be the underwriter.

© 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.