New Issue: Lehman prices $1.66 million 17.1% reverse exchangeables linked to Freeport-McMoRan

By Susanna Moon

Chicago, Nov. 29 - Lehman Brothers Holdings Inc. priced $1.66 million of 17.1% reverse exchangeable notes due May 30, 2008 linked to the common stock of Freeport-McMoRan Copper & Gold, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

The payout at maturity will be par unless Freeport-McMoRan shares fall by more than 45% 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 Freeport-McMoRan 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:	Freeport-McMoRan Copper & Gold, Inc. (NYSE: FCX)
Amount:	$1,661,000
Maturity:	May 30, 2008
Coupon:	17.1%, payable monthly
Price:	Par
Payout at maturity:	If Freeport-McMoRan shares close below the trigger price during the life of the notes and finish below the initial share price, 10.6485 Freeport-McMoRan shares or equivalent cash value; otherwise, par
Initial share price:	$93.91
Trigger price:	$51.6505, or 55% of initial share price
Pricing date:	Nov. 28
Settlement date:	Nov. 30
Underwriter:	Lehman Brothers Inc.
Fees:	1.5%

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