Lehman plans issue of Rangers linked to Sirius Satellite Radio

By Angela McDaniels

Seattle, April 18 - Lehman Brothers Holdings Inc. plans to price an issue of Rangers (Risk AdjustiNG Equity Range Securities) due 2007 performance-linked to Sirius Satellite Radio Inc. stock, according to a 424B5 filing with the Securities and Exchange Commission.

The coupon is expected to be between 14% and 16%, with the exact coupon to be determined at pricing.

If Sirius stock does not fall below the threshold value during the life of the notes or finishes above its initial price, payout at maturity will be par, payable in cash or stock at Lehman's option. The threshold value will be 70% of the stock's initial share price.

Investors will be fully exposed to any loss if Sirius stock falls below the threshold value during the life of the notes.

Lehman Brothers and Stifel Nicolaus will be underwriters for the offering.

Settlement of the offering is scheduled for March 9.

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