Lehman to price $50 million 0.45% notes linked to News Corp.

By Laura Lutz

Washington, Dec. 20 - Lehman Brothers Holdings Inc. plans to price a $50 million issue of 0.45% notes due Dec. 27, 2013 linked to the common stock of News Corp., according to a 424B5 filing with the Securities and Exchange Commission.

If the share price of News Corp. stock exceeds the threshold value on Dec. 23, 2013, the final valuation date, investors will receive par plus the return on the stock, payable in stock or cash at Lehman's option. Otherwise, investors will receive par.

The threshold value will be 110.22% of the average execution price per share of common stock Lehman Brothers pays to hedge the notes.

The notes are callable beginning Dec. 19, 2009. The redemption amount will be calculated in the same manner as the payout at maturity.

The notes are expected to settle on Dec. 27.

Lehman Brothers will act as underwriter for the deal.

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