New Issue: Lehman prices $789,000 14.35% reverse exchangeables linked to Ford

By Jennifer Chiou

New York, Oct. 30 - Lehman Brothers Holdings Inc. priced $789,000 of 14.35% annualized reverse exchangeable notes due April 30, 2008 linked to the common stock of Ford Motor Co., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

The payout at maturity will be par unless Ford stock falls by more than 30% during the life of the notes and the final share price is less than the initial share price, in which case the payout will be a number of Ford shares equal to $1,000 divided by the initial share price or, at Lehman's option, the equivalent cash value.

Lehman Brothers Inc. is the underwriter.

Issuer:	Lehman Brothers Holdings Inc.
Issue:	Reverse exchangeable notes
Underlying stock:	Ford Motor Co. (Symbol: F)
Amount:	$789,000
Maturity:	April 30, 2008
Coupon:	14.35% annualized, payable monthly
Price:	Par
Payout at maturity:	If Ford stock closes below the trigger price during the life of the notes and the final share price is less than the initial share price, a number of Ford shares equal to $1,000 divided by the initial price; otherwise, par
Initial share price:	$8.67
Trigger price:	$6.069, 70% of initial share price
Pricing date:	Oct. 26
Settlement date:	Oct. 31
Underwriter:	Lehman Brothers Inc.
Fees:	2.25%

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