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

By E. Janene Geiss

Philadelphia, June 13 - Lehman Brothers Holdings Inc. plans to price an offering of steepener notes due June 29, 2022, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay interest at 10% through June 29, 2008. After that, 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 will be payable quarterly.

The notes are callable at par on each interest payment date beginning June 29, 2008.

The notes are expected to price June 26 and settle June 29.

Lehman Brothers Inc. is the underwriter.

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