By E. Janene Geiss
Philadelphia, May 20 - Lehman Brothers Holdings Inc. priced an additional $5 million of 15-year non-callable for six months steepener notes due June 2, 2023 in a variable price re-offer, according to an FWP filing with the Securities and Exchange Commission.
The add-on brings the total offering size to $10 million. The notes initially priced at $5 million on May 9.
The notes will accrue interest at a rate to equal 40 times the spread of the 10-year Constant Maturity Swap (CMS) rate over the two-year CMS rate, subject to a floor of 0%.
Interest is payable quarterly and is capped at 11% per year.
The notes are callable at par on each interest payment date beginning Dec. 2, 2008.
Lehman Brothers Inc. is the underwriter.
| Issuer: | Lehman Brothers Holdings Inc.
|
| Issue: | 15-year non-callable for six months steepener notes
|
| Amount: | $10 million, up from $5 million
|
| Maturity: | June 2, 2023
|
| Coupon: | 40 times spread of 10-year CMS rate over two-year CMS rate; floor of 0%; cap of 11%; reset and payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par plus accrued interest
|
| Call option: | At par on any interest payment date beginning Dec. 2, 2008
|
| Pricing date: | May 9 for first $5 million, May 19 for add-on
|
| Settlement date: | June 2
|
| Underwriter: | Lehman Brothers Inc.
|
| Fees: | 2%
|
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