By Susanna Moon
Chicago, June 2 - Lehman Brothers Holdings Inc. priced $3 million of 15-year non-callable for one year steepener notes due June 26, 2023, according to an FWP filing with the Securities and Exchange Commission.
The interest rate will be 13% until June 26, 2009. After that, interest will accrue at a rate of 50 times the spread of the 30-year Constant Maturity Swap (CMS) rate over the 10-year CMS rate, subject to a floor of 0% and a cap of 25%.
Interest is payable quarterly.
The notes are callable at par on each interest payment date beginning June 26, 2009.
Lehman Brothers Inc. is the underwriter.
| Issuer: | Lehman Brothers Holdings Inc.
|
| Issue: | 15-year non-callable for one year steepener notes
|
| Amount: | $3 million
|
| Maturity: | June 26, 2023
|
| Coupon: | 13% for first year; after that, 50 times spread of 30-year CMS rate over 10-year CMS rate; floor of 0%; cap of 25%; reset and payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par plus accrued interest
|
| Call option: | At par on any interest payment date beginning June 26, 2009
|
| Pricing date: | May 30
|
| Settlement date: | June 26
|
| Underwriter: | Lehman Brothers Inc.
|
| Fees: | 2%
|
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