Lehman Brothers Holdings Inc. (NYSE: LEH) has just announced that it has "responded to investor interest" with the intent to offer to offer 3,000,000 shares of Non-Cumulative Perpetual Convertible Preferred Stock with a $1,000 per share offer. That’s $3 Billion.
It also expects to grant an overallotment option to purchase up to 450,000 additional shares of the Preferred Stock to the extent the underwriter sells more than 3,000,000 shares of the Preferred Stock in the offering.
The proceeds from this offering are designated as being used to bolster its capital and increase financial flexibility. The non-cumulative dividend rate, conversion rate and other terms have not yet been determined.
The Non-Cumulative Perpetual Convertible Preferred Stock, Series P, carries a par value of $1.00 per share and a liquidation preference of $1,000 per share. Lehman Brothers Inc. itself will act as the sole book-running manager, and this offering will be made under Lehman Brothers Holdings’ existing shelf registration statement filed with the SEC.
Lehman closed down 0.6% at $37.64, and shares are down 6% at $35.19 in after-hours trading. Its 52-week trading range is $20.25 to $82.05.
Jon C. Ogg
March 31, 2008
Jon Ogg produces the Special Situation Investing Newsletter and he can be reached at [email protected]; he does not own securities in the companies he covers.
Top Gaining Stocks
Top Losing Stocks