By Jennifer Chiou
New York, May 7 - Lehman Brothers Holdings Inc. priced a $2 million issue of 11.75% reverse exchangeable notes due May 8, 2008 linked to the common stock of Hercules Offshore Inc., according to an FWP filing with the Securities and Exchange Commission.
Interest will be payable monthly.
Payout at maturity will be par unless Hercules Offshore stock falls below the knock-in price of $22.85 - 70% of the initial share price - during the life of the notes and finishes below its initial share price of $32.64, in which case the payout will be a number of Hercules Offshore shares equal to $1,000 divided by the initial share price.
Lehman Brothers Inc. is the underwriter.
Issuer: | Lehman Brothers Holdings Inc.
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Issue: | Reverse exchangeable notes
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Underlying stock: | Hercules Offshore Inc.
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Amount: | $2 million
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Maturity: | May 8, 2008
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Coupon: | 11.75%, payable monthly
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Price: | Par
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Payout at maturity: | Par unless Hercules Offshore stock falls below the knock-in price of $22.85 during the life of the notes and finishes below its initial share price, in which case payout will be a number of Hercules Offshore shares equal to $1,000 divided by the initial share price
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Initial share price: | $32.64
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Knock-in price: | $22.85, 70% of $32.64
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Pricing date: | May 3
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Settlement date: | May 8
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Underwriter: | Lehman Brothers Inc.
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Underwriting discount: | 3.25%
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