Published on 5/8/2007 in the Prospect News Structured Products Daily.
New Issue: Lehman prices $25 million notes linked to Libor, BMA rate
By E. Janene Geiss
Philadelphia, May 8 - Lehman Brothers Holdings Inc. priced a $25 million issue of index spread notes due May 22, 2017 linked to Libor and the BMA municipal swap rate, according to an FWP filing with the Securities and Exchange Commission.
The notes will pay 8.7% interest up to but excluding May 22, 2008. After that the coupon will be 8.7% plus 10 times the difference between 65% of three month Libor and the average BMA municipal swap index. The coupon will be capped at 10.5%.
Interest will be payable semi-annually.
Lehman Brothers Inc. is the underwriter.
Issuer: | Lehman Brothers Holdings Inc.
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Issue: | Index spread notes
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Underlying rates: | Three-month Libor, average BMA municipal swap index
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Amount: | $25 million
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Maturity: | May 22, 2017
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Coupon: | 8.7% interest up to but excluding May 22, 2008. After that the coupon will be 8.7% plus 10 times the difference between 65% of three-month Libor and the average BMA municipal swap index, capped at 10.5%
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Interest rate cap: | 10.5%
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Price: | Par
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Payout at maturity: | Par
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Pricing date: | May 7
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Settlement date: | May 22
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Underwriter: | Lehman Brothers Inc.
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