By E. Janene Geiss
Philadelphia, April 4 - Lehman Brothers Holdings Inc. priced a $25 million issue of notes due April 17, 2037 linked to Libor and the BMA municipal swap rate, according to an FWP filing with the Securities and Exchange Commission.
The notes will pay 9.65% interest up to but excluding April 17, 2008. After that the coupon will be three-month Libor plus 4.3% plus eight times the difference between 65% of three month Libor and the average BMA municipal swap index. The difference can be negative.
The coupon has a cap of the lesser of 17% and 1.9 times three month Libor plus 25 basis points.
Interest will be payable quarterly.
Lehman Brothers Inc. is the underwriter.
| Issuer: | Lehman Brothers Holdings Inc.
|
| Issue: | Index spread notes
|
| Amount: | $25 million
|
| Maturity: | April 17, 2037
|
| Coupon: | 9.65% interest up to but excluding April 17, 2008. After that the coupon will be three-month Libor plus 4.3% plus eight times the difference between 65% of three month Libor and the average BMA municipal swap index; The difference can be negative; coupon capped at the lesser of 17% and 1.9 times three month Libor plus 25 basis points
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Pricing date: | April 3
|
| Settlement date: | April 17
|
| Underwriter: | Lehman Brothers Inc.
|
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