By E. Janene Geiss
Philadelphia, Nov. 7 - Lehman Brothers Holdings Inc. priced a $25 million issue of index spread notes due Nov. 19, 2037 linked to the difference between the Sifma municipal swap index and Libor, according to an FWP filing with the Securities and Exchange Commission.
The notes will pay a base interest rate of 10.6% up to but excluding Nov. 19, 2008. After that, the base interest rate will be equal to three-month Libor plus 600 basis points plus 8 times the difference between 65% of three-month Libor and the Sifma rate.
Payments in each interest period are capped at an annual rate of the lesser of 17% and 1.9 times Libor plus 125 bps. Amounts above the cap are carried forward to be paid on future interest payment dates, subject to the same cap.
Lehman Brothers Inc. is the underwriter.
| Issuer: | Lehman Brothers Holdings Inc.
|
| Issue: | Index spread notes
|
| Underlying rates: | Three-month Libor, Sifma rate
|
| Amount: | $25 million
|
| Maturity: | Nov. 19, 2037
|
| Coupon: | 10.6% up to but excluding Nov. 19, 2008; after that, the base interest rate will be equal to three-month Libor plus 600 basis points plus 8 times the difference between 65% of three-month Libor and the Sifma rate; payments in each interest period are capped at an annual rate of the lesser of 17% and 1.9 times Libor plus 125 bps; amounts above the cap are carried forward to be paid on future interest payment dates, subject to the same cap
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Pricing date: | Nov. 6
|
| Settlement date: | Nov. 19
|
| Underwriter: | Lehman Brothers Inc.
|
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