New Issue: Bear Stearns prices $2.4 million 17% reverse convertibles linked to U.S. Steel

By Laura Lutz

Washington, Dec. 12 - Bear Stearns Cos. Inc. priced $2.4 million of 17% reverse convertible notes due March 13, 2007 linked to United States Steel Corp. stock, according to a 424B5 filing with the Securities and Exchange Commission.

If U.S. Steel stock falls to or below the contingent protection level of $63.00, 80% 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 $78.75 initial price, in stock (12 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:	United States Steel Corp. common stock
Amount:	$2.4 million
Maturity:	March 13, 2007
Coupon:	17%, payable at maturity
Payment at maturity:	If U.S. Steel stock falls below the contingent protection level of $63.00 during the life of the notes and finishes below the initial price, payout will be $1,000 divided by the $78.75 initial price, in stock (12 shares plus fractions in cash) or equivalent in cash; otherwise par
Initial price:	$78.75
Contingent protection level:	$63.00, 80% of the initial level
Pricing date:	Dec. 8
Settlement date:	Dec. 13
Agent:	Bear, Stearns & Co. Inc.

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