By Laura Lutz
Des Moines, March 11 - Lehman Brothers Holdings Inc. priced another $2 million of CMS spread range accrual notes due March 17, 2028, according to an FWP filing with the Securities and Exchange Commission.
This tranche brings the total issue size to $10 million. Lehman originally priced $5 million of notes on Feb. 26 and priced another $3 million on March 3.
Interest is payable quarterly.
The notes will bear interest at 11% per year through March 17, 2009. Thereafter, the interest rate will be 11% multiplied by the proportion of days on which the spread of the 30-year Constant Maturity Swap (CMS) rate over the 10-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 March 17, 2009.
Lehman Brothers Inc. is the underwriter.
| Issuer: | Lehman Brothers Holdings Inc.
|
| Issue: | CMS spread range accrual notes
|
| Amount: | $10 million, upsized from $5 million
|
| Maturity: | March 17, 2028
|
| Coupon: | 11% until March 17, 2009; thereafter, 11% times proportion of days on which the spread of the 30-year CMS rate over 10-year CMS rate is at least 0%; payable quarterly with a floor of 0%
|
| Price: | Variable
|
| Payout at maturity: | Par
|
| Call option: | At par on interest payment dates beginning March 17, 2009
|
| Pricing date: | Feb. 26 (for $5 million); March 3 (for $3 million); March 11 (for $2 million)
|
| Settlement date: | March 17
|
| Underwriter: | Lehman Brothers Inc.
|
| Fees: | 3%
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
