Lehman to price steepener notes linked to 30-year, 10-year CMS rates

By Angela McDaniels

Seattle, May 2 - Lehman Brothers Holdings Inc. plans to price an offering of steepener notes due May 31, 2012 linked to the 30-year and 10-year Constant Maturity Swap (CMS) rates, according to an FWP filing with the Securities and Exchange Commission.

The notes are expected to price on May 25 and settle on May 31.

The notes will bear interest at 6.5% per year for six months. Beginning Nov. 30, 2007, interest will equal 45 times the spread of the 30-year CMS rate over the 10-year CMS rate, subject to a minimum interest rate of 0%.

Interest will be payable and reset quarterly.

The notes will be callable at par plus accrued interest on any interest date beginning Nov. 30, 2007.

The payout at maturity will be par plus accrued interest.

Lehman Brothers Inc. will be the underwriter.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.