Replies to post #28208 on Lehman Brothers Financial SA (LEHNQ)

[stockmojo9]

Thanks.

I'm trying to stay on top of all this and it's a lot.

It comes together in pieces if it comes together at all.

So, it looks like this document is saying a 14.9% distribution payment is coming in the last POR payment although there may be a chance still the CTs will be re-affirmed, re-instated, brought current and on the market until called or maturity.

[stockbum9]

Those (i-iv) are not the CTs, they are the Subordinated Debentures between LBHI and the Trust. That SubDebt is what LBHI issued (sold) to the Trust. The CTs (preferred securities) are, however, linked to those Sub-Debts, but are not one in the same.The SubDebt is definitely in Class 10B...but are the CTs????

LBHI-----(Sub-Debts in Class 10B)--------->Trust-----(CTs)----LBHI ->Underwriters---->CT Holders


According the the CT Prospectus (in this case for LHHMQ), the Trust is issuing the CTs (preferred securities) and selling them back to LBHI, who in turn is selling them to the Underwriters to be placed on the market.

UNDERWRITING

General

Subject to the terms and conditions of an underwriting agreement dated the date of this prospectus supplement, the trust has agreed to issue and sell to Holdings the total number of preferred securities set forth below. Holdings, in turn, has agreed to sell to each of the underwriters named below, and each of the underwriters, for whom Lehman Brothers Inc. is acting as the representative, has severally agreed to purchase from Holdings the number of preferred securities set forth opposite its name below: (Just posted the top 11)

Lehman Brothers Inc. 1,592,000
A.G. Edwards & Sons, Inc. 1,580,000
Citigroup Global Markets Inc. 1,580,000
Merrill Lynch, Pierce, Fenner & Smith
Incorporated 1,580,000
Morgan Stanley & Co. Incorporated 1,580,000
UBS Securities LLC 1,580,000
Wachovia Capital Markets, LLC 1,580,000
ABN AMRO Incorporated 320,000
Banc of America Securities LLC 320,000
Fidelity Capital Markets, a division of National Financial Services LLC 320,000
J.P. Morgan Securities Inc. 320,000

Notice how LBI is the representative, and that is why I think they are involved based on my last two posts dealing with JPM, Barclays, Subrogation, High Confidentiality, $1.5B,etc, and lack of response from JPM concerning the questions many of us sent to them!