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

By E. Janene Geiss

Philadelphia, Aug. 29 - Lehman Brothers Holdings Inc. plans to price an offering of 15-year CMS (constant maturity swap) callable spread daily accrual notes due Sept. 28, 2022 via UBS Financial Services Inc. and Lehman Brothers Inc., according to an FWP filing with the Securities and Exchange Commission.

The notes are expected to price Sept. 25 and settle Sept. 28.

The notes will pay a percentage, which is 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%.

The notes are callable on quarterly interest payment dates beginning Sept. 28, 2008.

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