Lehman Brothers priced its first transaction backed by tobacco litigation fees stemming from the Master Settlement Agreement last month. Until now, this sector had been the exclusive province of Deutsche Bank Securities.
The 8.3-year class A notes, rated Baa2' by Moody's Investors Service, priced in a negotiated placement to yield 9.25%, right in line with initial price guidance for the 8.3-year tenor paper. The legal final maturity is 2034. Global Securitization Services LLC is administrating the transaction.