New Issue: Lehman Brothers prices $500 million extendible floaters due 2011 at par

By Jennifer Chiou

New York, Sept. 27 - Lehman Brothers Holdings, Inc. priced $500 million of extendible floating-rate senior notes at par, according to an FWP filing with the Securities and Exchange Commission.

The notes (A1/A+/AA-) have an initial maturity of 2008 but it is extendible by holders on the 14th of each month from October 2007 onwards for one year, up to final maturity of 2011.

Their coupon is one-month Libor plus 17 basis points initially, with the spread increasing to 19 bps, 21 bps, 23 bps on successive annual reset dates.

Lehman Brothers Inc. was the underwriter.

Issuer:	Lehman Brothers Holdings Inc.
Issue:	Extendible floating-rate senior notes
Amount:	$500 million
Maturity:	Oct. 14, 2008, extendible to June 14, 2011
Underwriter:	Lehman Brothers Inc.
Coupon:	One-month Libor plus 17 bps, stepping up to 23 bps
Price:	Par
Call:	June 14, 2010 onwards in whole or in part at par, at issuer's option
Trade date:	Sept. 26
Settlement date:	Sept. 28
Ratings:	Moody's: A1
	Standard & Poor's: A+
	Fitch: AA

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