Lehman to issue Wedding Cake principal-protected notes linked to light sweet crude oil

By Jennifer Chiou

New York, Dec. 7 - Lehman Brothers Holdings Inc. plans to price an issue of 0% principal-protected "Wedding Cake" notes with an expected maturity of Dec. 29, 2007 linked to the price of light sweet crude oil, according to an FWP filing with the Securities and Exchange Commission.

At maturity, investors will receive par plus 18% if, during the life of the notes, crude oil remains within the narrowest barrier range, expected to be 85% to 115% of its initial value; par plus 11% if crude oil remains within the middle barrier range, expected to be 82% to 118% of its initial value; and par plus 5% if crude oil remains within the broadest barrier range, expected to be 73% to 127% of its initial value.

If crude oil moves outside that range, the payout at maturity will be par.

The exact barrier levels will be set at pricing.

Pricing is slated for Dec. 11 with settlement on Dec. 28.

Lehman Brothers Inc. will be the underwriter for the offering.

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