New Issue: Lehman sells $47.5 million 20% Yeelds linked to Hewlett-Packard

By Angela McDaniels

Seattle, Feb. 20 - Lehman Brothers Holdings Inc. priced a $47,500,023.60 offering of 20% Yield Enhanced Equity Linked Debt Securities (Yeelds) due Feb. 24, 2008 linked to the common stock of Hewlett-Packard Co., according to a 424B5 filing with the Securities and Exchange Commission.

Interest is payable monthly.

The payout at maturity will be the final value of Hewlett-Packard stock multiplied by 0.849257. The payout will be capped at par of $42.86 - the average execution price per share Lehman paid to hedge the transaction - and will be payable in stock or cash.

Issuer:	Lehman Brothers Holdings Inc.
Issue:	Yield Enhanced Equity Linked Debt Securities (Yeelds) medium-term senior notes, series I
Underlying stock:	Hewlett-Packard Co.
Amount:	$47,500,023.60
Greenshoe:	$7,125,003.54
Maturity:	Feb. 24, 2008
Coupon:	20%, payable monthly
Price:	Par of $42.86
Payout at maturity:	84.9257% of the final value of Hewlett-Packard stock, capped at par and payable in stock or cash
Initial multiplier:	0.849257
Pricing date:	Feb. 15
Settlement date:	Feb. 23
Underwriter:	Lehman Brothers Inc.
Underwriting discount:	None

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