New Issue: Lehman prices $3.12 million 15% reverse convertibles linked to Qualcomm

By Susanna Moon

Chicago, July 22 - Lehman Brothers Holdings Inc. priced $3.12 million of 15% annualized reverse convertible notes due Oct. 25, 2008 linked to Qualcomm Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

Payout at maturity will be par in cash unless Qualcomm shares fall below the protection price - 75% of the initial price - during the life of the notes and finish below the initial price, in which case the payout will be a number of Qualcomm shares equal to $1,000 principal amount divided by the initial price.

Lehman Brothers Inc. is the agent.

Issuer:	Lehman Brothers Holdings Inc.
Issue:	Reverse convertible notes
Underlying stock:	Qualcomm Inc. (Nasdaq: QCOM)
Amount:	$3,124,000
Maturity:	Oct. 25, 2008
Coupon:	15%, payable monthly
Price:	Par
Payout at maturity:	Par in cash unless the stock falls below the protection price during the life of the notes and finishes below the initial price, in which case 22.1288 Qualcomm shares
Initial price:	$45.19
Protection price:	$33.8925, or 75% of initial price
Pricing date:	July 18
Settlement date:	July 25
Agent:	Lehman Brothers Inc.
Fees:	1.65%

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