New Issue: Lehman prices $785,000 14.75% reverse exchangeables linked to Coach

By Jennifer Chiou

New York, Jan. 30 - Lehman Brothers Holdings Inc. priced $785,000 of 14.75% annualized reverse exchangeable notes due July 31, 2008 linked to the common stock of Coach, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

The payout at maturity will be par unless Coach shares fall by more than 40% during the life of the notes and the final share price is less than the initial share price, in which case the payout will be a number of Coach shares equal to $1,000 divided by the initial share price or, at Lehman's option, the equivalent cash value.

Lehman Brothers Inc. is the underwriter.

Issuer:	Lehman Brothers Holdings Inc.
Issue:	Reverse exchangeable notes
Underlying stock:	Coach, Inc. (Symbol: COH)
Amount:	$785,000
Maturity:	July 31, 2008
Coupon:	14.75%, payable monthly
Price:	Par
Payout at maturity:	If Coach shares close below the trigger price during the life of the notes and finish below the initial share price, a number of Coach shares equal to $1,000 divided by the initial share price or, at Lehman's option, the equivalent cash value; otherwise, par
Initial share price:	$30.70
Trigger price:	$18.42, 60% of initial share price
Pricing date:	Jan. 28
Settlement date:	Jan. 31
Underwriter:	Lehman Brothers Inc.
Fees:	1.9%

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