By Laura Lutz
Des Moines, Feb. 20 - Lehman Brothers Holdings Inc. priced $2 million of semi-annual review notes with contingent protection due Feb. 24, 2010 linked to the worse-performing of the common stocks of Wachovia Corp. and JPMorgan Chase & Co., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be automatically called at increasing premiums if the closing price of each of the stocks is above its initial level on any of four semi-annual review dates.
The redemption amount will be 120% of par if the notes are called on Aug. 19, 2008; 140% of par if the notes are called on Feb. 20, 2009; 160% of par if the notes are called on Aug. 19, 2009; and 180% of par if the notes are called on Feb. 19, 2010.
If the notes are not called early and either of the stocks falls below its trigger level - 60% of its initial level - during the life of the notes, the payout will be a number of the worse-performing shares equal to par divided by the initial price of that the stock.
If the notes are not called early and both stocks stay above their trigger levels, the payout will be par.
Lehman Brothers Inc. is the agent.
| Issuer: | Lehman Brothers Holdings Inc.
|
| Issue: | Semi-annual review notes with contingent protection
|
| Underlying stocks: | Wachovia Corp. (NYSE: WB) and JPMorgan Chase & Co. (NYSE: JPM)
|
| Amount: | $1,999,000
|
| Maturity: | Feb. 24, 2010
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If either stock falls below trigger level during life of notes, number of worst-performing shares equal to par divided by initial price of that stock; otherwise, par
|
| Call: | If closing price of each stock is above initial level on review date; at 120% of par on Aug. 19, 2008; 140% of par on Feb. 20, 2009; 160% of par on Aug. 19, 2009; and 180% of par on Feb. 19, 2010
|
| Initial prices: | $33.79 for Wachovia; $42.83 for JPMorgan
|
| Trigger prices: | 60% of initial prices; $20.274 for Wachovia; $25.698 for JPMorgan
|
| Agent: | Lehman Brothers Inc.
|
| Pricing date: | Feb. 19
|
| Settlement date: | Feb. 22
|
| Fees: | 2.8%
|
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