New Issue: Lehman prices $7 million 9.55% reverse exchangeables linked to SPDR Trust

By Susanna Moon

Chicago, April 28 - Lehman Brothers Holdings Inc. priced $7 million of 9.55% reverse exchangeable notes due April 29, 2009 linked to the SPDR Trust, Series 1, according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

The payout at maturity will be par unless the stock falls by more than 25% during the life of the notes and finishes below the initial share price, in which case the payout will be a number of SPDR Trust shares equal to $1,000 divided by the initial share price or, at the bank's option, the equivalent cash value.

Lehman Brothers Inc. is the underwriter.

Issuer:	Lehman Brothers Holdings Inc.
Issue:	Reverse exchangeable notes
Underlying stock:	SPDR Trust, Series 1 (AMEX: SPY)
Amount:	$7,005,000
Maturity:	April 29, 2009
Coupon:	9.55%, payable monthly
Price:	Par
Payout at maturity:	If the fund shares fall below the barrier price during the life of the notes and finishes below the initial share price, a number of shares equal to par divided by initial price; otherwise, par
Initial share price:	$137.88
Barrier price:	$103.41, or 75% of initial price
Pricing date:	April 24
Settlement date:	April 29
Underwriter:	Lehman Brothers Inc.
Fees:	2%

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