Lehman Brothers Financial SA (LEHNQ)

[jwnoble3]

Lehman had lots of pref series, why just the J's?

https://www.quantumonline.com/ParentCoSearch.cfm?tickersymbol=LEHMQ


Its is interesting that the Js are not redeemable until 2/2023..

Our Replacement Capital Covenant

At or prior to the initial issuance of the Preferred Stock, we will enter into a replacement capital covenant relating to the depositary shares and the Preferred Stock. The replacement capital covenant only benefits holders of covered debt, as defined under the "Certain Terms of the Replacement Capital Covenant," and is not enforceable by holders of the depositary shares or the Preferred Stock. However, the replacement capital covenant could preclude us from redeeming or purchasing depositary shares or shares of Preferred Stock at a time we might otherwise wish to do so.

In the replacement capital covenant, we covenant not to redeem or purchase, and to cause our subsidiaries not to redeem or purchase, the depositary shares or shares of Preferred Stock before February 15, 2023 (or such later date as we may determine if we decide to extend the term of the replacement capital covenant) except to the extent (i) during the 6 months prior to such redemption or purchase, we have
received net proceeds in the amount specified in the replacement capital covenant from the sale of securities that have equity-like characteristics that are the same or more equity-like than the applicable characteristics of the depositary shares and the Preferred Stock at the time of such redemption or purchase (any such securities, "replacement capital securities") or (ii) the depositary shares and the Preferred Stock are exchanged for consideration that includes common stock with a market value of at least 75% of the aggregate liquidation preference of the Preferred Stock or at least an equal aggregate liquidation preference or principal amount of replacement capital securities other than common stock, or a combination thereof.

See "Description of the Preferred Stock—Redemption or Repurchase Subject to Restrictions" for further information about redemptions or repurchases of the depository shares or shares of Preferred Stock.