New Issue: Lehman sells $1.1 million 9% reverse exchangeables linked to Best Buy

By Jennifer Chiou

New York, May 18 - Lehman Brothers Holdings Inc. priced a $1.1 million issue of 9% reverse exchangeable notes due June 2, 2008 linked to the common stock of Best Buy Co., Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Interest will be payable monthly.

Payout at maturity will be par unless Best Buy stock falls below the knock-in price of $37.776 - 80% of the initial share price - during the life of the notes and finishes below its initial share price of $47.22, in which case the payout will be a number of Best Buy shares equal to $1,000 divided by the initial share price.

Lehman Brothers Inc. is the underwriter.

Issuer:	Lehman Brothers Holdings Inc.
Issue:	Reverse exchangeable notes
Underlying stock:	Best Buy Co., Inc.
Amount:	$1.1 million
Maturity:	June 2, 2008
Coupon:	9%, payable monthly
Price:	Par
Payout at maturity:	Par unless Best Buy stock falls below the knock-in price of $37.776 during the life of the notes and finishes below its initial share price, in which case payout will be a number of Best Buy shares equal to $1,000 divided by the initial share price
Initial share price:	$47.22
Knock-in price:	$37.776, 80% of $47.22
Pricing date:	May 16
Settlement date:	May 31
Underwriter:	Lehman Brothers Inc.
Fees:	3.05%

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