By Jennifer Chiou
New York, July 18 - Lehman Brothers Holdings Inc. priced a $5 million offering of steepener notes due July 30, 2022, according to an FWP filing with the Securities and Exchange Commission.
The notes will pay interest at 10% through July 30, 2008. After that, the interest rate will be reset quarterly and will equal 40 times the spread of the 10-year Constant Maturity Swap (CMS) rate over the two-year CMS rate, subject to a minimum interest rate of 0% and a maximum of 25%.
Interest will be payable quarterly.
The notes are callable at par on each interest payment date beginning July 30, 2008.
Lehman Brothers Inc. is the underwriter.
| Issuer: | Lehman Brothers Holdings Inc.
|
| Issue: | Steepener notes
|
| Amount: | $5 million
|
| Maturity: | July 30, 2022
|
| Coupon: | 10% through July 30, 2008; 40 times the spread of the 10-year CMS rate over the two-year CMS rate after that; minimum of 0%; maximum of 25%; payable quarterly
|
| Price: | Par
|
| Call: | At par on each interest payment date beginning July 30, 2008
|
| Payout at maturity: | Par plus accrued interest
|
| Pricing date: | July 18
|
| Settlement date: | July 30
|
| Underwriter: | Lehman Brothers Inc.
|
| Fees: | None
|
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