Lehman to price $14 million 0% notes linked to Cisco Systems

By Jennifer Chiou

New York, Aug. 3 - Lehman Brothers Holdings Inc. plans to price $14 million of 0% notes due Aug. 9, 2009 linked to Cisco Systems Inc. stock, according to a 424B5 filing with the Securities and Exchange Commission.

At maturity, if the value of Cisco Systems stock meets or exceeds the threshold value - to be 119.75% of the price Lehman Brothers will pay to hedge the notes - investors will receive the final value of the stock payable in stock or cash at Lehman's option. Otherwise, investors will receive par.

The medium-term series I notes are expected to settle on Aug. 9.

Lehman Brothers Inc., the underwriter, will have a $2.1 million greenshoe.

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