Published on 7/27/2006 in the Prospect News Convertibles Daily.
New Issue: Lehman prices $23.9 million 2% notes linked to Microsoft
By Jennifer Chiou
New York, July 27 - Lehman Brothers Holdings Inc. priced $23.9 million of 2% notes due Aug. 1, 2013 performance-linked to Microsoft Corp. stock, according to a 424B5 filing with the Securities and Exchange Commission.
Payout at maturity will be par plus any percentage increase over the threshold price of $27.5885, which is 115% of the price Lehman paid to hedge the notes. The payout will have a floor of par and will be payable in cash or stock at Lehman's option.
Issuer: | Lehman Brothers Holdings Inc.
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Issue: | Performance-linked medium-term senior notes
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Underlying stock: | Microsoft Corp.
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Amount: | $23.9 million
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Greenshoe: | $3.585 million
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Maturity: | Aug. 1, 2013
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Coupon: | 2%
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Price: | Par
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Exchange premium: | 15% (over $23.99 that Lehman paid to hedge the notes)
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Exchange price: | $27.5885 (automatic exchange at maturity if more valuable)
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Pricing date: | July 25
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Settlement date: | Aug. 1
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Underwriter: | Lehman Brothers
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