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Lehman Brothers buys €175 mln of 2.5% Orco bonds

Lehman Brothers Holdings Inc., the fourth-largest US securities company, bought €175 million ($230 million) of Orco Property Group SA bonds with warrants, according to a statement posted on Orco's Web site.

Orco Property Group SA is a real estate developer with properties in central and Eastern Europe. The bonds pay 2.5% interest and mature in 2014. Lehman Brothers Holdings Inc. sold part of the holding to other investors on March 7, acting as the sole bookrunner for the issue. The warrants can be redeemed after five years if their value exceeds €190.31, or 130% of the initial price. The warrants will give Lehman Brothers the rights to 1,793,160 new shares until the maturity date. The bonds and warrants will be listed on the Paris bourse next month. (Bloomberg)