Lehman Brothers Holdings Inc. 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 (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 1 July 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 12 June 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.