By Laura Lutz
Des Moines, Feb. 19 - Lehman Brothers Holdings Inc. increased the fees that it will pay to Lehman Brothers Inc. for its $10 million issue of Constant Maturity Swap (CMS) spread range accrual notes due Feb. 27, 2023, according to an FWP filing with the Securities and Exchange Commission.
The fees are now 3.5%, up from 1.2%.
The notes initially priced Jan. 29 at $5 million. Another $5 million priced on Feb. 1.
Interest is payable quarterly and equals 9% multiplied by the proportion of days on which the spread of the 30-year CMS rate over the two-year CMS rate is at least 0%.
Interest for each quarter will be at least 0%.
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.
|
| Issue: | CMS spread range accrual notes
|
| Amount: | $10 million, up from $5 million
|
| Maturity: | Feb. 27, 2023
|
| Coupon: | 9% multiplied by the proportion of days on which the spread of the 30-year CMS rate over the two-year CMS rate is at least 0%; payable quarterly with a floor of 0%
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Call: | At par on interest payment dates beginning Feb. 27, 2009
|
| Pricing dates: | Jan. 29 for initial offering, Feb. 1 for additional $5 million
|
| Settlement date: | Feb. 27
|
| Underwriter: | Lehman Brothers Inc.
|
| Fees: | 3.5%
|
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