NEW YORK, June 9 /PRNewswire-FirstCall/ -- Lehman Brothers Holdings Inc. (NYSE:LEH) announced today it has priced a $4.0 billion public offering of 143 million shares of common stock at $28.00 per share.
The Firm also announced that it priced a $2.0 billion public offering of 2.0 million shares of 8.75% Non-Cumulative Mandatory Convertible Preferred Stock, Series Q (the "Preferred Stock").
The Preferred Stock has a liquidation preference of $1,000 per share, and will pay quarterly cash dividends on a non-cumulative basis, when, as and if declared by the Board of Directors, at a rate of 8.75% per year on the liquidation preference. Each share of the Preferred Stock will be mandatorily converted on July 1, 2011 into between 30.2663 shares and 35.7142 shares of Lehman Brothers common stock, unless earlier converted at the option of the holder. The conversion rate is subject to adjustment in certain circumstances.
The offerings are subject to customary closing conditions and are expected to close on June 12, 2008.
The proceeds from the offerings will be added to the Firm's capital and used for general corporate purposes.
Lehman Brothers Inc. served as sole book-running manager and underwriter for the offerings. The offerings have been made under Lehman Brothers Holdings' existing shelf registration statement filed with the Securities and Exchange Commission.
This announcement does not constitute an offer to sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The offerings may be made only by means of a prospectus and a related prospectus supplement, copies of which may be obtained when available from Lehman Brothers Inc., c/o Broadridge, Integrated Distribution Services, 1155 Long Island Avenue, Edgewood, NY 11717; fax: 631-254-7140, or email: .
Lehman Brothers (ticker symbol: LEH), an innovator in global finance, serves the financial needs of corporations, governments and municipalities, institutional clients, and high net worth individuals worldwide. Founded in 1850, Lehman Brothers maintains leadership positions in investment banking, equity and fixed income sales, trading and research, private investment management, asset management and private equity. The firm is headquartered in New York, with regional headquarters in London and Tokyo, and operates in a network of offices around the world. Lehman Brothers Inc. is a member of SIPC. DATASOURCE: Lehman Brothers Holdings Inc.
CONTACT: Media, Kerrie Cohen, +1-212-526-4092; Investors, Ed Grieb, +1-212-526-0588 Web site: http://www.lehman.com/
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