By Susanna Moon
Chicago, June 17 - 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 rates, according to an FWP filing with the Securities and Exchange Commission.
Interest accrues at 14% per year until June 26, 2009. Thereafter, interest will be 20 times the spread of the 30-year CMS rate over the two-year CMS rate, with a minimum rate of 0% per year and a maximum rate of 20% per year. Interest is payable quarterly.
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: | 14% per year until June 26, 2009; thereafter, 20 times spread of 30-year CMS rate over two-year CMS rate; floor of 0%, cap of 20% per year; payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Call option: | At par on interest payment dates beginning June 26, 2009
|
| Pricing date: | June 17
|
| Settlement date: | June 26
|
| Underwriter: | Lehman Brothers Inc.
|
| Fees: | 0.6%
|
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