Lehman to issue Wedding Cake principal-protected notes linked to light sweet crude oil

By E. Janene Geiss

Philadelphia, July 11 - Lehman Brothers Holdings Inc. plans to price an issue of 0% principal-protected Wedding Cake notes with a one-year maturity linked to the price of light sweet crude oil, according to an FWP filing with the Securities and Exchange Commission.

At maturity, investors will receive par plus 11% if, during the life of the notes, crude oil remains within the narrowest barrier range, expected to be 83% to 117% of its initial value; par plus 7% if crude oil remains within the middle barrier range, expected to be 80% to 120% of its initial value; and par plus 1.5% if crude oil remains within the broadest barrier range, expected to be 75% to 125% of its initial value.

The exact barrier levels will be set at pricing.

If crude oil moves outside that range, the payout at maturity will be par.

Pricing and settlement dates are yet to be determined.

Lehman Brothers Inc. will be the underwriter for the offering.

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