By Angela McDaniels
Tacoma, Wash., June 12 - Lehman Brothers Holdings Inc. priced $25 million of 15-year non-callable-for-one-year steepener notes due June 26, 2023 linked to the 30-year and two-year Constant Maturity Swap (CMS) rates, according to an FWP filing with the Securities and Exchange Commission.
Interest is payable quarterly and, for the first year, accrues at 12% per year. Beginning June 26, 2009, interest will equal 20 times the spread of the 30-year CMS rate over the two-year CMS rate, subject to a minimum rate of 0% per year and a maximum rate of 20% per year.
Beginning June 26, 2009, the notes are callable at par on any interest payment date.
If the notes are not called, the payout at maturity will be par.
Lehman Brothers Inc. is the underwriter.
| Issuer: | Lehman Brothers Holdings Inc.
|
| Issue: | 15-year non-callable-for-one-year steepener notes
|
| Amount: | $25 million
|
| Maturity: | June 26, 2023
|
| Coupon: | 9% per year for first year; beginning June 26, 2009, 20 times the spread of the 30-year CMS rate over the two-year CMS rate with a floor of 0% and a cap of 20% per year; payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Call option: | At par on interest payment dates from June 26, 2009 onward
|
| Pricing date: | June 12
|
| Settlement date: | June 26
|
| Underwriter: | Lehman Brothers Inc.
|
| Fees: | 1.95%
|
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