By Jennifer Chiou
New York, Feb. 29 - Bear Stearns Cos. Inc. priced $1 million of 25% annualized reverse convertible notes due Sept. 2, 2008 linked to American Depositary Shares representing ordinary shares of Elan Corp. plc, according to a 424B5 filing with the Securities and Exchange Commission.
Interest is payable at maturity.
Payment at maturity will be determined according to the performance of Elan ADSs. If the ADS price closes below $18.216, the knock-in price, during the life of the notes and closes below $22.77, the initial ADS price, on the final valuation date, investors will receive a number of Elan ADSs equal to $1,000 divided by the initial ADS price. The knock-in price is 80% of the initial ADS price.
Otherwise, investors will receive par in cash.
Bear, Stearns & Co. Inc. is the agent.
| Issuer: | Bear Stearns Cos. Inc.
|
| Issue: | Reverse convertible notes
|
| Underlying stock: | Elan Corp. plc (NYSE: ELN)
|
| Amount: | $1 million
|
| Maturity: | Sept. 2, 2008
|
| Coupon: | 25%, payable at maturity
|
| Price: | Par
|
| Payout at maturity: | If Elan ADSs close below the knock-in price during the life of the notes and finish below the initial ADS price, 43.917 Elan ADSs; otherwise, par in cash
|
| Initial ADS price: | $22.77
|
| Knock-in price: | $18.216, 80% of initial ADS price
|
| Exchange ratio: | 43.917 shares, at maturity
|
| Pricing date: | Feb. 27
|
| Settlement date: | March 3
|
| Agent: | Bear, Stearns & Co. Inc.
|
| Fees: | 1%
|
| Distribution: | Off shelf
|
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