By Jennifer Chiou
New York, June 14 - Lehman Brothers Holdings Inc. priced a further upsized $15 million offering of steepener notes due June 22, 2022, according to an FWP filing with the Securities and Exchange Commission.
Originally, $5 million of securities was priced. The issue was then upsized to $9 million.
The notes will pay interest at 11% through June 22, 2009. 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 22, 2009.
Lehman Brothers Inc. is the underwriter.
Issuer: | Lehman Brothers Holdings Inc.
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Issue: | Steepener notes
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Amount: | $15 million, upsized from $9 million
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Maturity: | June 22, 2022
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Coupon: | 11% through June 22, 2009; 50 times the spread of the 30-year CMS rate over the 10-year CMS rate after that; payable quarterly
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Price: | Par
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Call: | At par on each interest payment date beginning June 22, 2009
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Payout at maturity: | Par plus accrued interest
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Pricing date: | June 7
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Settlement date: | June 22
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Underwriter: | Lehman Brothers Inc.
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Fees: | None
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