Lehman moves maturity date for commodity-linked enhanced participation notes to 2009

By Laura Lutz

Des Moines, Aug. 7 - Lehman Brothers Holdings Inc. amended the maturity date for a planned issue of enhanced participation notes linked to a basket consisting of copper and zinc, according to a form FWP filed with the Securities and Exchange Commission on Monday.

The maturity date is now expected to be Aug. 31, 2009, moved up from Aug. 31, 2010.

The offering was originally announced in a form FWP filed on Friday.

The notes are now expected to price on Aug. 28 and settle on Aug. 31.

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

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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