New Issue: Lehman prices additional $5.36 million 9.35% Yeelds linked to ABB

By Jennifer Chiou

New York, Dec. 5 - Lehman Brothers Holdings Inc. priced another $5.36 million of 9.35% notes due Aug. 8, 2008 structured as Yield Enhanced Equity Linked Debt Securities (Yeelds) linked to ABB Ltd. stock, according to a 424B2 filing with the Securities and Exchange Commission.

Lehman originally priced $35 million of the notes on July 31, bringing the total issue to $40.36 million.

Interest will be payable monthly.

At maturity, investors will receive the value of one share of ABB stock, capped at $28.2634, which is 115% of the initial value of $24.5769 that Lehman paid to hedge the transaction. The payout will be payable in stock or cash.

Lehman Brothers Inc. is the underwriter.

Issuer:	Lehman Brothers Holdings Inc.
Issue:	Yield Enhanced Equity Linked Debt Securities (Yeelds)
Underlying stock:	ABB Ltd. (NYSE: ABB)
Amount:	$40,358,342 (including $5,358,329 add-on)
Greenshoe:	$803,738
Maturity:	Aug. 8, 2008
Coupon:	9.35%
Price:	Par
Payout at maturity:	Value of one share of ABB stock, capped at $28.2634, which is 115% of the initial value of $24.5769 that Lehman paid to hedge the transaction; in stock or cash
Initial price:	$24.5769
Pricing date:	July 31 for original $35,000,012; Nov. 30 for add-on
Settlement date:	Aug. 7 for original $35,000,012; Dec. 5 for add-on
Underwriter:	Lehman Brothers Inc.
Fees:	0%

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