By Angela McDaniels
Tacoma, Wash., March 3 - Lehman Brothers Holdings Inc. priced an additional $3 million of steepener notes due March 13, 2023, according to an FWP filing with the Securities and Exchange Commission.
The company priced $10 million of the notes on Feb. 26 and $2 million more on Feb. 29. The total amount of notes priced is now $15 million.
The notes accrue interest at 10% per year for the first year. Beginning March 13, 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 25% per year.
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.
|
| Issue: | Steepener notes
|
| Amount: | $15 million, upsized from $10 million
|
| Maturity: | March 13, 2023
|
| Coupon: | 10% for first year; beginning March 13, 2009, 50 times the spread of the 30-year CMS rate over the 10-year CMS rate; minimum of 0% and maximum rate of 25% per year; payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Call: | At par on any interest payment date from March 13, 2009 onward
|
| Pricing date: | Feb. 26 for $10 million; Feb. 28 for $2 million; Feb. 29 for $3 million
|
| Settlement date: | March 13
|
| Underwriter: | Lehman Brothers Inc.
|
| Fees: | 1.65%
|
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