New Issue: Bear Stearns prices $1.75 million 16.75% reverse convertibles linked to SanDisk

By Laura Lutz

Des Moines, Oct. 30 - Bear Stearns Cos. Inc. priced a $1.75 million issue of 16.75% reverse convertible notes due Oct. 31, 2007 linked to SanDisk Corp. stock, according to a 424B5 filing with the Securities and Exchange Commission.

If SanDisk stock falls to or below the contingent protection level of $37.61, 75% 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 $50.14 initial price, in stock (19 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:	SanDisk Corp.
Amount:	$1.75 million
Maturity:	Oct. 31, 2007
Coupon:	16.75%
Payment at maturity:	If SanDisk stock falls below the contingent protection level of $37.61 during the life of the notes and finishes below the initial price, payout will be $1,000 divided by the $50.14 initial price, in stock (19.9442 shares plus fractions in cash) or equivalent in cash; otherwise par
Initial price:	$50.14
Contingent protection level:	$37.61, 75% of the initial level
Pricing date:	Oct. 26
Settlement date:	Oct. 31
Agent:	Bear, Stearns & Co. Inc.
Agent fee:	2.0357%

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