By E. Janene Geiss
Philadelphia, June 20 - Lehman Brothers Holdings Inc. priced $1 million of 15-year non-callable-for-six-months steepener notes due July 14, 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 six months, accrues at 18% per year. Beginning Jan. 14, 2009, interest will equal 15 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 18% per year.
Beginning Jan. 14, 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-six-months steepener notes
|
| Amount: | $1 million
|
| Maturity: | July 14, 2023
|
| Coupon: | 18% per year for first year; beginning Jan. 14, 2009, 15 times the spread of the 30-year CMS rate over the two-year CMS rate with a floor of 0% and a cap of 18% per year; payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Call option: | At par on interest payment dates from Jan. 14, 2009 onward
|
| Pricing date: | June 19
|
| Settlement date: | July 14
|
| Underwriter: | Lehman Brothers Inc.
|
| Fees: | 2%
|
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