New Issue: Bear Stearns prices $730,000 10.25% reverse convertibles linked to Google

By Angela McDaniels

Seattle, June 12 - The Bear Stearns Cos. Inc. priced a $730,000 issue of 10.25% reverse convertible notes due June 12, 2008 linked to the class A common stock of Google Inc., according to a 424B5 filing with the Securities and Exchange Commission.

Interest is payable semiannually.

The payout at maturity will be par unless Google hits the protection level of $412.39 during the life of the notes and finishes below the initial share price of $515.49, in which case the payout will be a number of Google shares equal to $1,000 divided by the initial share price with fractional shares paid in cash or, at Bear Stearns' option, par minus the share price decline.

Bear Stearns said it may grant a $109,500 greenshoe to Bear, Stearns & Co. Inc., which is the agent for the offering.

Issuer:	The Bear Stearns Cos. Inc.
Issue:	Reverse convertible notes
Underlying stock:	Google Inc. class A common stock
Amount:	$730,000
Maturity:	June 12, 2008
Coupon:	10.25%, payable semiannualy
Price:	Par
Payout at maturity:	If Google stock remains above the protection level during the life of the notes or finishes at or above the initial share price, par; otherwise, one Google share and $485.51 in cash or, at Bear Stearns' option, par minus the share price decline
Initial share price:	$515.49
Protection level:	$412.39, 80% of initial share price
Pricing date:	June 8
Settlement date:	June 13
Agent:	Bear, Stearns & Co. Inc.
Fees:	None

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