Lehman to price 15-year spread range accrual notes linked to CMS rates

By Laura Lutz

Des Moines, April 30 - Lehman Brothers Holdings Inc. plans to price an offering of Constant Maturity Swap (CMS) callable spread daily accrual notes due May 31, 2022, according to an FWP filing with the Securities and Exchange Commission.

The notes are expected to price on May 23 and settle on May 31.

The notes will pay a percentage to be determined at pricing and expected to be between 7.625% and 8.125%, multiplied by an interest accrual factor equal to the proportion of days on which the spread of the 30-year CMS rate over the two-year CMS rate is greater than or equal to 0.0%.

Interest will be payable quarterly.

The notes will be callable at par on any interest payment date beginning May 31, 2008.

UBS Financial Services Inc. and Lehman Brothers Inc. are the agents.

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