By Laura Lutz
Des Moines, Sept. 19 - Lehman Brothers Holdings Inc. upsized its issue of steepener notes due Sept. 28, 2022 to $7 million, according to an FWP filing with the Securities and Exchange Commission.
The company originally priced $1 million of the notes on Sept. 11. The issue was increased to $3 million on Sept. 13.
The notes will accrue interest at 12% for the first six months. Beginning March 28, 2008, 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 is payable quarterly.
The notes are callable at par on each interest payment date beginning March 28, 2008.
Lehman Brothers Inc. is the underwriter.
Issuer: | Lehman Brothers Holdings Inc.
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Issue: | Steepener notes
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Amount: | $7 million, upsized from $1 million
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Maturity: | Sept. 28, 2022
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Coupon: | 12% until March 28, 2008; 50 times the spread of the 30-year CMS rate over the 10-year CMS rate after that; minimum of 0%; payable quarterly
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Price: | Par
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Payout at maturity: | Par plus accrued interest
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Call: | At par on each interest payment date beginning March 28, 2008
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Pricing date: | Sept. 11
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Settlement date: | Sept. 28
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Underwriter: | Lehman Brothers Inc.
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Fees: | None
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