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Monday, March 31, 2008

Lehman to Offer $3 Billion in Convertible Preferreds

by Calculated Risk on 3/31/2008 05:18:00 PM

From Bloomberg: Lehman to Sell $3 Billion of Shares to Institutional Investors (hat tip Tim)

Lehman Brothers Holdings Inc. ... is selling at least $3 billion of new shares to U.S. institutions to reassure investors it has ample access to capital.
Here are the details from the press release: Lehman Brothers to Offer 3.0 Million Shares of Convertible Preferred Stock (hat tip Dwight)
The non-cumulative dividend rate, conversion rate and other terms are yet to be determined.

Update from Reuters: Lehman converts seen having 7-7.5 percent dividend
Lehman Brothers Holdings Inc's $3 billion of convertible preferred shares are seen having a dividend of 7 percent to 7.5 percent and a conversion premium of 30 percent to 35 percent ... The deal is expected to be sold by Tuesday before market close ...