New Issue: Lehman prices $150 million 7% Yeelds linked to Alcoa

By Jennifer Chiou

New York, July 17 - Lehman Brothers Holdings Inc. priced $150 million of 7% notes structured as Yield Enhanced Equity-Linked Debt Securities (Yeelds) due July 25, 2007 linked to Alcoa Inc. stock, according to a 424B5 filing with the Securities and Exchange Commission.

At maturity, investors will receive the final value of Alcoa stock during the averaging period, the last five trading days, capped at $37.188, 120% of the initial value, which will be payable in stock or cash at Lehman's option.

Issuer:	Lehman Brothers Holdings Inc.
Issue:	Yeelds (Yield Enhanced Equity-Linked Debt Securities) medium-term senior series H notes
Underlying stock:	Alcoa Inc.
Amount:	$150,301,500
Greenshoe:	$22,545,225
Maturity:	July 25, 2007
Coupon:	7%, payable quarterly
Price:	Par of $30.99
Payout at maturity:	Final value of Alcoa stock during the averaging period, the last five trading days, capped at $37.188, payable in stock or cash at Lehman's option
Cap price:	$37.188, 120% of initial value
Pricing date:	July 13
Settlement date:	July 18
Underwriter:	Lehman Brothers Inc.

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