New Issue: Lehman prices $614,000 15.3% notes linked to Smith & Wesson

By Angela McDaniels

Seattle, Feb. 27 - Lehman Brothers Holdings Inc. priced a $614,000 offering of reverse exchangeable notes due Aug. 28, 2007 linked to the common stock of Smith & Wesson Holding Corp., according to a 424B2 filing with the Securities and Exchange Commission.

The six-month notes will pay 7.65% for an annualized rate of 15.3%. Interest is payable monthly.

The payout at maturity will be par unless Smith & Wesson falls below the trigger price of $9.03 during the life of the notes and finishes below the initial share price of $12.90, in which case the payout will be a number of Smith & Wesson shares equal to $1,000 divided by the initial share price.

Issuer:	Lehman Brothers Holdings Inc.
Issue:	Reverse exchangeable notes
Underlying stock:	Smith & Wesson Holding Corp.
Amount:	$614,000
Maturity:	Aug. 28, 2007
Coupon:	15.3%
Price:	Par
Payout at maturity:	If Smith & Wesson falls below the trigger price during the life of the notes and finishes below the initial share price, 77.51938 Smith & Wesson shares; otherwise, par
Initial share price:	$12.90
Trigger price:	$9.03, 70% of $12.90
Pricing date:	Feb. 23
Settlement date:	Feb. 28
Underwriter:	Lehman Brothers Inc.
Underwriting discount:	2.25%

© 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.