JPMorgan assumes obligations for billions of Bear Stearns notes, preferreds

By Angela McDaniels

Tacoma, Wash., July 31 - Bear Stearns Cos. LLC transferred its broker-dealer subsidiary, Bear, Stearns & Co. Inc., to JPMorgan Chase & Co. on Thursday, according to an 8-K filing with the Securities and Exchange Commission.

In connection with the transfer, JPMorgan assumed all liabilities and obligations of Bear Stearns as issuer of the following securities:

• BearLink Alerian MLP Select index exchange-traded notes, of which there were $96.8 million outstanding as of May 31 ;

• Principal-protected notes linked to the S&P 500 index due October 2008, with $13.4 million outstanding;

• Principal-protected notes linked to the Nasdaq 100 index due December 2009, with $12.1 million outstanding;

• Principal-protected notes linked to the S&P 500 index due November 2009, with $7.5 million outstanding;

• Principal-protected notes linked to the Dow Jones Industrial Average due March 2011, with $10.0 million outstanding;

• Medium-term notes linked to a basket of three international equity indexes due August 2010, with $21.0 million outstanding; and

• All other long-term debt issued by Bear Stearns under an effective registration statement under the Securities Act of 1933, as amended. As of May 31, the principal amount of these notes was about $19.9 billion.

JPMorgan also assumed all of Bear Stearns' liabilities and obligations associated with:

• Bear Stearns Capital Trust III's $262.5 million preferred securities;

• The joint issuance program of Bear Stearns Bank plc and Bear Stearns;

• The $1.3 billion of notes issued under a note deed poll between Bear Stearns, JPMorgan Chase Bank, Sydney Branch and the Commonwealth Bank of Australia;

• The $1.6 billion of Japanese yen bonds issued under the Samurai Bond Program;

• The notes issued under the EMTN program of Bear Stearns, Bear Stearns Bank, Bear Stearns Global Asset Holdings, Ltd., Bear Stearns Caribbean Asset Holdings Ltd. and Citicorp Trustee Co. Ltd.; and

• The $14.4 billion of notes issued by Bear Stearns Global Asset Holdings under the note issuance agreement among Bear Stearns Global Asset Holdings, Bear Stearns, JPMorgan Chase Bank, Kredietbank SA Luxembourgeoise, Bear, Stearns International Ltd. and Bear, Stearns & Co. Inc.

Bear Stearns (formerly Bear Stearns Cos. Inc.) is an investment banking, securities and derivatives trading, and clearance and brokerage company based in New York. It was acquired by JPMorgan, a New York financial services firm, in June.

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