Lehman Brothers Holdings Inc. intends to raise $6.0 billion through offerings of common stock and Non-Cumulative Mandatory Convertible Preferred Stock. The proceeds from the offerings will be added to the Firm’s capital and used for general corporate purposes.
The Non-Cumulative Mandatory Convertible Preferred Stock, Series Q, has a liquidation preference of $1,000 per share (the Preferred Stock ). The Preferred Stock will be mandatorily convertible into shares of Lehman Brothers common stock, plus cash in lieu of fractional shares in three years. The non-cumulative dividend rate, conversion rate and other terms are yet to be determined.
Each offering is being conducted as a public offering registered under the Securities Act of 1933 under Lehman Brothers Holdings existing shelf registration statement filed with the Securities and Exchange Commission.
Lehman Brothers Inc. is serving as sole book-running manager and underwriter for the offerings.