By Angela McDaniels
Tacoma, Wash., Feb. 27 - Lehman Brothers Holdings Inc. priced an additional $5 million of steepener notes due March 13, 2023, according to an FWP filing with the Securities and Exchange Commission.
The company originally priced $5 million of the notes on Feb. 26. The total amount of notes priced is now $10 million.
The notes bear interest at 10% for the first year. Beginning March 13, 2009, interest 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 cap of 25% per year and a floor of 0%.
Interest is payable quarterly.
Beginning March 13, 2009, the notes are callable at par on any interest payment date.
Lehman Brothers Inc. is the underwriter.
Issuer: | Lehman Brothers Holdings Inc.
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Issue: | Steepener notes
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Amount: | $10 million, upsized from $5 million
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Maturity: | March 13, 2023
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Coupon: | 10% for first year; beginning March 13, 2009, 50 times spread of 30-year CMS rate over 10-year CMS rate; floor of 0%; capped at 25% per year; reset and payable quarterly
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Price: | Par
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Payout at maturity: | Par
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Call option: | At par on interest payment dates from March 13, 2009 onward
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Pricing date: | Feb. 26 for original issue; Feb. 27 for $5 million add-on
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Settlement date: | March 13
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Underwriter: | Lehman Brothers Inc.
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Fees: | 1.65%
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