Published on 10/30/2006 in the Prospect News Structured Products Daily.
New Issue: Bear Stearns prices $1.25 million 12% reverse convertibles linked to Valero
By Laura Lutz
Des Moines, Oct. 30 - Bear Stearns Cos. Inc. priced a $1.25 million issue of 12% reverse convertible notes due Oct. 31, 2007 linked to Valero Energy Corp. stock, according to a 424B5 filing with the Securities and Exchange Commission.
If Valero stock falls to or below the contingent protection level of $42.29, 80% of the initial level, during the life of the notes and the stock finishes below the initial share price, the payout will be $1,000 divided by the $52.86 initial price, in stock (18 shares plus fractions in cash) or the equivalent in cash.
Otherwise, payout is par.
Issuer: | The Bear Stearns Cos. Inc.
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Issue: | Reverse convertible notes
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Underlying security: | Valero Energy Corp.
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Amount: | $1.25 million
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Maturity: | Oct. 31, 2007
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Coupon: | 12%
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Payment at maturity: | If Valero stock falls below the contingent protection level of $42.29 during the life of the notes and finishes below the initial price, payout will be $1,000 divided by the $52.86 initial price, in stock (18 shares plus fractions in cash) or equivalent in cash; otherwise par
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Initial price: | $52.86
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Contingent protection level: | $42.29, 80% of the initial level
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Pricing date: | Oct. 26
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Settlement date: | Oct. 31
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Agent: | Bear, Stearns & Co. Inc.
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Agent fee: | 1.7876%
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