By Laura Lutz
Des Moines, Dec. 6 - Lehman Brothers Holdings Inc. priced an additional $4 million of steepener notes due Dec. 28, 2022, according to an FWP filing with the Securities and Exchange Commission.
This add-on brings the total issue to $21 million. The notes originally priced on Nov. 27 at $2 million. The company priced another $1 million on Nov. 28, $4 million on Dec. 4 and $10 million on Dec. 5.
The notes will accrue interest at 9.5% for the first year. Beginning Dec. 28, 2008, the interest rate will be reset quarterly and will equal 50 times the spread of the 30-year Constant Maturity Swap (CMS) rate over the 10-year CMS rate, subject to a minimum interest rate of 0%.
Interest is payable quarterly.
The notes are callable at par on each interest payment date beginning Dec. 28, 2008.
Lehman Brothers Inc. is the underwriter.
Issuer: | Lehman Brothers Holdings Inc.
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Issue: | Steepener notes
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Amount: | $21 million, upsized from $2 million
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Maturity: | Dec. 28, 2022
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Coupon: | 9.5% until Dec. 28, 2008; 50 times the spread of the 30-year CMS rate over the 10-year CMS rate after that; minimum of 0%; payable quarterly
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Price: | Par
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Payout at maturity: | Par plus accrued interest
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Call: | At par on each interest payment date beginning Dec. 28, 2008
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Pricing date: | Nov. 27 for $2 million; Nov. 28 for $1 million; Dec. 4 for $4 million; Dec. 5 for $10 million; Dec. 6 for $4 million
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Settlement date: | Dec. 28
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Underwriter: | Lehman Brothers Inc.
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Fees: | 1.5%
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