Bear Stearns prices $2.6 million of 14.25% reverse convertibles linked to Ford

By Laura Lutz

Des Moines, Sept. 28 - Bear Stearns Cos. Inc. priced a $2.6 million issue of 14.25% reverse convertible notes due March 29, 2007 linked to Ford Motor Co., according to a 424B5 filing with the Securities and Exchange Commission.

If Ford stock falls to or below the contingent protection level of $5.89, 70% of the initial level, during the life of the notes and the stock finishes below the initial share price, the payout will be $1,000 divided by the $8.41 initial price, in stock (118 shares plus fractions in cash) or the equivalent in cash.

Otherwise, payout is par.

Issuer:	The Bear Stearns Cos. Inc.
Issue:	Reverse convertible notes
Underlying security:	Ford Motor Co.
Amount:	$2.6 million
Maturity:	March 29, 2007
Coupon:	14.25%
Payment at maturity:	If Ford stock falls below the contingent protection level of $5.89 during the life of the notes and finishes below the initial price, payout will be $1,000 divided by the $8.41 initial price, in stock (118 shares plus fractions in cash) or equivalent in cash; otherwise par
Initial price:	$8.41
Contingent protection level:	$5.89, 70% of the initial level
Pricing date:	Sept. 26
Settlement date:	Sept. 29
Agent:	Bear, Stearns & Co. Inc.

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