New Issue: Lehman prices $286,000 15% reverse exchangeables linked to Under Armour

By Angela McDaniels

Tacoma, Wash., Dec. 11 - Lehman Brothers Holdings Inc. priced $286,000 of reverse exchangeable notes due March 12, 2008 linked to the common stock of Under Armour, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The three-month notes pay 3.75% for an annualized rate of 15%. Interest is payable monthly.

The payout at maturity will be par unless Under Armour stock falls by 40% or more during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Under Armour shares equal to $1,000 divided by the initial share price or, at Lehman's option, the equivalent cash value.

Lehman Brothers Inc. is the underwriter.

Issuer:	Lehman Brothers Holdings Inc.
Issue:	Reverse exchangeable notes
Underlying stock:	Under Armour, Inc. (NYSE: UA)
Amount:	$286,000
Maturity:	March 12, 2008
Coupon:	15%, payable monthly
Price:	Par
Payout at maturity:	If Under Armour stock closes below the trigger price during the life of the notes and the final share price is less than the initial share price, 20.644 Under Armour shares or the equivalent cash value; otherwise, par
Initial share price:	$48.44
Trigger price:	$29.064, 60% of initial share price
Pricing date:	Dec. 7
Settlement date:	Dec. 12
Underwriter:	Lehman Brothers Inc.
Fees:	1.66%

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