New Issue: Lehman prices $150 million 8% Yeelds linked to Baker Hughes

By Jennifer Chiou

New York, Feb. 21 - Lehman Brothers Holdings Inc. priced a $150,082,249 issue of 8% notes due March 4, 2008 structured as Yield Enhanced Equity Linked Debt Securities (Yeelds) linked to Baker Hughes Inc. stock, according to a 424B5 filing with the Securities and Exchange Commission.

Interest will be payable quarterly.

At maturity, investors will receive the value of one share of Baker Hughes stock, capped at $74.7134, which is 114% of the initial value of $65.5381 that Lehman paid to hedge the transaction. The payout will be payable in stock or cash.

Issuer:	Lehman Brothers Holdings Inc.
Issue:	Yeelds (Yield Enhanced Equity Linked Debt Securities) medium-term senior notes, series I
Underlying stock:	Baker Hughes Inc.
Amount:	$150,082,249
Greenshoe:	$22,512,337
Maturity:	March 4, 2008
Coupon:	8%, payable quarterly
Price:	Par of $65.5381
Payout at maturity:	Value of one share of Baker Hughes stock, capped at $74.7134, payable in stock or cash
Cap price:	$74.7134, 114% of initial value
Pricing date:	Feb. 16
Settlement date:	Feb. 26
Underwriter:	Lehman Brothers Inc.
Underwriting discount:	None

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