By E. Janene Geiss
Philadelphia, Jan. 11 - Lehman Brothers Holdings Inc. priced an upsized $15 million issue of steepener notes due Jan. 30, 2023, according to an FWP filing with the Securities and Exchange Commission.
On Jan. 10, $5 million of notes priced while $10 million priced on Jan. 11.
The notes will pay interest at 9.5% per year for the first year. Beginning Jan. 30, 2009, 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 any interest payment date beginning Jan. 30, 2009.
Lehman Brothers Inc. is the underwriter.
| Issuer: | Lehman Brothers Holdings Inc.
|
| Issue: | Steepener notes
|
| Amount: | $15 million, upsized from $5 million
|
| Maturity: | Jan. 30, 2023
|
| Coupon: | 9.5% for first year; beginning Jan. 30, 2009, 50 times the spread of the 30-year CMS rate over the 10-year CMS rate; minimum of 0%; payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par plus accrued interest
|
| Call: | At par on any interest payment date beginning Jan. 30, 2009
|
| Pricing date: | Jan. 10 for $5 million; Jan. 11 for $10 million
|
| Settlement date: | Jan. 30
|
| Underwriter: | Lehman Brothers Inc.
|
| Fees: | 1.65%
|
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