New Issue: Bear Stearns prices $1.575 million 15% reverse convertibles linked to Petróleo Brasileiro

By Jennifer Chiou

New York, July 11 - Bear Stearns Cos. Inc. priced a $1.575 million issue of one-year 15% reverse convertible notes linked to Petróleo Brasileiro SA stock, according to a 424B5 filing with the Securities and Exchange Commission.

If Petróleo Brasileiro stock falls by 20% 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 Petróleo Brasileiro shares equal to $1,000 divided by the initial share price.

Otherwise, payout is par.

Issuer:	The Bear Stearns Cos. Inc.
Issue:	Reverse convertible notes
Underlying stock:	Petróleo Brasileiro SA
Amount:	$1.575 million
Maturity:	July 12, 2007
Coupon:	15%, payable monthly
Price:	Par
Payout at maturity:	Par unless Petróleo Brasileiro stock falls by 20% or more 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 Petróleo Brasileiro shares equal to $1,000 divided by the initial share price
Initial share price:	$87.21
Protection price:	$69.77, 80% of the initial share price
Pricing date:	July 7
Settlement date:	July 12
Agent:	Bear, Stearns & Co., Inc.

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