New Issue: Bear Stearns prices $2.25 million 13% reverse convertibles linked to General Motors

By Susanna Moon

Chicago, Sept. 27 - Bear Stearns Cos. Inc. priced a $2.25 million issue of 13% reverse convertible notes due March 28, 2008 linked to the stock of General Motors Corp., according to a 424B5 filing with the Securities and Exchange Commission.

Interest is payable annually.

The payout at maturity will be par unless the stock hits the protection level of $20.652 during the life of the notes and finishes below the initial share price of $34.42, in which case the payout will be a number of General Motors 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 & Co. Inc. is the agent.

Issuer:	Bear Stearns Cos. Inc.
Issue:	Reverse convertible notes
Underlying stock:	General Motors Corp. (NYSE: GM)
Amount:	$2.25 million
Maturity:	March 28, 2008
Coupon:	13%, payable annually
Price:	Par
Payout at maturity:	If the stock remains above the protection level during the life of the notes or finishes at or above the initial share price, par; otherwise, a number of shares equal to $1,000 divided by the initial share price
Initial share price:	$34.42
Protection level:	$20.652, or 60% of initial share price
Pricing date:	Sept. 25
Settlement date:	Sept. 28
Agent:	Bear, Stearns & Co. Inc.
Fees:	1.0139%

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