Lehman to price enhanced participation notes linked to copper, zinc

By Laura Lutz

Des Moines, Aug. 6 - Lehman Brothers Holdings Inc. plans to price an issue of enhanced participation notes due Aug. 31, 2010 linked to a basket consisting of copper and zinc, according to an FWP filing with the Securities and Exchange Commission.

The basket consists of equal weights of copper - grade A and special high grade zinc.

The notes are expected to price on Aug. 27 and settle on Aug. 31.

If the final basket level is at least the initial level, the payout at maturity will be par plus any basket return times a participation rate. The participation rate will be between 175% and 225%, and the exact rate will be set at pricing.

If the basket declines by up to 20%, the payout will be par. Investors will lose 1% for each 1% that the basket declines beyond 20%.

Lehman Brothers Inc. is the underwriter.

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