New Issue: Lehman Brothers prices $5 million of Rapids linked to basket of five Asian indexes

By Angela McDaniels

Seattle, Feb. 28 - Lehman Brothers Holdings Inc. priced $5 million of 0% senior unsecured notes due June 3, 2007 in the Return-Accelerated Portfolio Debt Securities (Rapids) structure linked to a basket of five indexes, according to a 424B5 filing with the Securities and Exchange Commission.

At maturity, the notes will pay par plus double any gain on the basket, capped at $1,183.

If the basket loses up to 10%, payout at maturity will be par. If the basket loses more than 10%, payout at maturity will be par less 1.1111 times any loss over 10%.

Issuer:	Lehman Brothers Holdings Inc.
Issue:	Return-Accelerated Portfolio Debt Securities (Rapids) senior medium-term notes
Underlying indexes:	Korea Stock Price Index 200 (31.3%), MSCI Taiwan Index (24.7%), Amex Hong Kong 30 Index (18.9%), FTSE/Xinhua China 23 Index (14.5%), MSCI Singapore Free Index (10.6%)
Amount:	$5 million
Greenshoe:	$750,000
Maturity:	June 3, 2007
Coupon:	0%
Price:	Par
Payout at maturity:	Par plus double any gain on the basket, capped at $1,183; if final basket level is up to 10% below initial level, par; if final basket level is more than 10% below initial level, par less 1.111 times any loss over 10%
Pricing date:	Feb. 24
Settlement date:	March 3
Underwriter:	Lehman Brothers Inc.

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