Bear Stearns plans issue of reverse convertibles linked to Ford Motor

By Jennifer Chiou

New York, Sept. 18 - Bear Stearns Cos. Inc. plans to price an issue of one-year reverse convertible notes linked to Ford Motor Co. stock, according to an FWP filing with the Securities and Exchange Commission.

The coupon is talked at 14.25%.

If Ford Motor stock falls by 30% or more during the life of the notes and the stock finishes below the initial share price, payout will be cash, with a full exposure to the stock's decline, or a number of Ford Motor shares equal to $1,000 divided by the initial share price.

Otherwise, payout is par.

The notes will price and settle in September

Bear, Stearns & Co. Inc. is the agent.

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