By E. Janene Geiss
Philadelphia, March 27 - Lehman Brothers Holdings Inc. priced a $5 million offering of 15-year non-callable for one year steepener notes due April 10, 2023, according to an FWP filing with the Securities and Exchange Commission.
The notes will accrue interest at 11% for the first year. Beginning April 10, 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. Interest will not be more than 25% per year or less than 0%.
Interest is payable quarterly. The notes are callable at par on each interest payment date beginning April 10, 2009.
Lehman Brothers Inc. is the underwriter.
| Issuer: | Lehman Brothers Holdings Inc.
|
| Issue: | 15-year non-callable for one year steepener notes
|
| Amount: | $5 million tranche
|
| Maturity: | April 10, 2023
|
| Coupon: | 11% for first year; beginning April 10, 2009, 50 times spread of 30-year CMS rate over 10-year CMS rate; floor of 0%; cap of 25% per year; reset and payable quarterly
|
| Price: | Variable
|
| Payout at maturity: | Par plus accrued interest
|
| Call: | At par on any interest payment date beginning April 10, 2009
|
| Pricing date: | March 27
|
| Settlement date: | April 10
|
| Underwriter: | Lehman Brothers Inc.
|
| Fees: | 1.8%
|
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