New Issue: Lehman prices $14.6 million 6.6% Yeelds linked to Dollar General

By Angela McDaniels

Seattle, Nov. 28 - Lehman Brothers Holdings Inc. priced a $14,627,529.24 issue of notes due May 30, 2007 structured as Yield Enhanced Equity Linked Debt Securities (Yeelds) linked to Dollar General Corp. stock, according to a 424B5 filing with the Securities and Exchange Commission.

The six-month notes will pay 3.3% for an annualized rate of 6.6%.

If Dollar General stock does not fall below the trigger price of $13.224 during the life of the notes, the payout at maturity will be the final value of Dollar General stock provided that investors receive at least par and not more than $18.183, 110% of the initial value. The payout will be payable in stock or cash.

If Dollar General stock falls below the trigger price during the life of the notes, investors will be fully exposed to any decline.

Issuer:	Lehman Brothers Holdings Inc.
Issue:	Yeelds (Yield Enhanced Equity-Linked Debt Securities) medium-term senior notes, series I
Underlying stock:	Dollar General Corp.
Amount:	$14,627,529.24
Greenshoe:	$2,194,126.08
Maturity:	May 30, 2007
Coupon:	6.6%, payable quarterly
Price:	Par of $16.53
Payout at maturity:	If Dollar General stock does not fall below the trigger price of $13.224 during the life of the notes, final value of Dollar General stock with a floor of par and a cap of $18.183, payable in stock or cash; otherwise, full exposure to any decline
Cap price:	$18.183, 110% of initial value
Trigger price:	$13.224, 80% of initial value
Pricing date:	Nov. 22
Settlement date:	Nov. 30
Underwriter:	Lehman Brothers Inc.
Fees:	0.25%

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