Bear Stearns plans issue of 12% reverse convertibles linked to Dell

By Angela McDaniels

Seattle, Oct. 17 - Bear Stearns Cos. Inc. plans to price an issue of reverse convertible notes linked to the common stock of Dell, Inc., according to an FWP filing with the Securities and Exchange Commission.

The six-month notes are expected to pay one coupon payment of 6%, for an annualized rate of 12%, and to mature in April 2007. The exact coupon and maturity will be determined at pricing, sometime in October.

Payout at maturity will be par in cash unless Dell stock falls by 20% or more during the life of the notes and finishes below the initial share price, in which case investors will be fully exposed to the stock's decline or will receive a number of Dell shares equal to $1,000 divided by the initial share price, at Bear Stearns' option.

Bear, Stearns & Co. Inc. will be the agent.

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