By E. Janene Geiss
Philadelphia, Feb. 15 - Lehman Brothers Holdings Inc. priced an additional $2 million of steepener notes due Feb. 27, 2023, according to an FWP filing with the Securities and Exchange Commission.
This brings the issue size to $12 million. Previously, the company priced $5 million of the notes on Jan. 30, $3 million on Feb. 12 and $2 million on Feb. 13.
The notes will pay interest at 9.5% per year for the first year. Beginning Feb. 27, 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% and a maximum rate of 20%.
Interest is payable quarterly.
The notes are callable at par on any interest payment date beginning Feb. 27, 2009.
Lehman Brothers Inc. is the underwriter.
Issuer: | Lehman Brothers Holdings Inc.
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Issue: | Steepener notes
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Amount: | $12 million, upsized from $5 million
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Maturity: | Feb. 27, 2023
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Coupon: | 9.5% for first year; beginning Feb.27, 2009, 50 times the spread of the 30-year CMS rate over the 10-year CMS rate; minimum of 0% and maximum rate of 20%; 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 any interest payment date beginning Feb. 27, 2009
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Pricing date: | Jan. 30 for $5 million; Feb. 12 for $3 million; Feb. 13 for $2 million; Feb. 14 for $2 million
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Settlement date: | Feb. 27
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Underwriter: | Lehman Brothers Inc.
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