New Issue: Lehman prices $1.9 million 13% reverse exchangeables linked to Schering-Plough

By Jennifer Chiou

New York, March 13 - Lehman Brothers Holdings Inc. priced $1.9 million of 13% annualized reverse exchangeable notes due Sept. 14, 2008 linked to the common stock of Schering-Plough Corp., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

The payout at maturity will be par unless Schering-Plough shares fall 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 Schering-Plough 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:	Schering-Plough Corp. (Symbol: SGP)
Amount:	$1.9 million
Maturity:	Sept. 14, 2008
Coupon:	13%, payable monthly
Price:	Par
Payout at maturity:	If the stock closes below the trigger price during the life of the notes and finishes below the initial share price, a number of Schering-Plough shares equal to $1,000 divided by the initial share price or, at Lehman's option, the equivalent cash value; otherwise, par
Initial share price:	$19.98
Trigger price:	$13.986, 70% of initial share price
Pricing date:	March 11
Settlement date:	March 14
Underwriter:	Lehman Brothers Inc.
Fees:	2.5%

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