By Angela McDaniels
Tacoma, Wash., March 13 - Lehman Brothers Holdings Inc. priced an additional $1 million of steepener notes due March 17, 2023, according to an FWP filing with the Securities and Exchange Commission.
The company originally priced $1.1 million of the notes on March 7. The total amount of notes priced is now $2.1 million.
The notes accrue interest at 8% per year for the first six months. Beginning Sept. 17, 2008, 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. There is a cap of 20% per year and a floor of 0%.
Interest is payable quarterly.
Beginning Sept. 17, 2008, the notes are callable at par on each interest payment date.
Lehman Brothers Inc. is the underwriter.
| Issuer: | Lehman Brothers Holdings Inc.
|
| Issue: | Steepener notes
|
| Amount: | $2.1 million, upsized from $1.1 million
|
| Maturity: | March 17, 2023
|
| Coupon: | 8% for first six months; beginning Sept. 17, 2008, 50 times spread of 30-year CMS rate over 10-year CMS rate; floor of 0%; cap of 20% per year; reset and payable quarterly
|
| Price: | Par for original issue; variable for add-on
|
| Payout at maturity: | Par
|
| Call option: | At par on interest payment dates from Sept. 17, 2008 onward
|
| Pricing date: | March 7 for original issue; March 12 for add-on
|
| Settlement date: | March 17
|
| Underwriter: | Lehman Brothers Inc.
|
| Fees: | 1.8%
|
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