Published on 12/19/2007 in the Prospect News Structured Products Daily.
New Issue: Lehman prices $1.5 million 15-year non-inversion notes
By E. Janene Geiss
Philadelphia, Dec. 19 - Lehman Brothers Holdings Inc. priced a $1.5 million issue of 15-year non-inversion notes due Dec. 28, 2022 that is non-callable for two years, according to an FWP filing with the Securities and Exchange Commission.
Interest will be payable quarterly. During the interest period, the coupon will be multiplied by the proportion of days for which the 30-year Constant Maturity Swap (CMS) rate is higher than the two-year CMS rate. The coupon amount will be 7% to Dec. 28, 2012, then 9% until Dec. 28, 2017 and 12% until the maturity date.
The notes are callable at par on each interest payment date beginning Dec. 28, 2009.
Lehman Brothers Inc. is manager.
Issuer: | Lehman Brothers Holdings Inc.
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Issue: | 15-year callable notes
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Underlying asset: | 30-year Constant Maturity Swap rate, two-year CMS rate
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Amount: | $1.5 million
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Maturity: | Dec. 28, 2022
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Coupon: | During the interest period, the coupon will be multiplied by the proportion of days for which the 30-year CMS rate is higher than the two-year CMS rate; coupon is 7% to Dec. 28, 2012; 9% until Dec. 28, 2017; 12% until maturity date
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Price: | Par
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Call: | On interest payment dates starting Dec. 28, 2009 at par
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Pricing date: | Dec. 18
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Settlement date: | Dec. 28
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Underwriter: | Lehman Brothers Inc.
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Fees: | 2.5%
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