Bear Stearns prices $700,000 of 14.5% reverse convertibles linked to Best Buy

By Laura Lutz

Des Moines, Sept. 28 - Bear Stearns Cos. Inc. priced a $700,000 issue of 14.5% reverse convertible notes due March 29, 2007 linked to Best Buy Co., Inc. stock, according to a 424B5 filing with the Securities and Exchange Commission.

If Best Buy stock falls to or below the contingent protection level of $44.16, 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 $55.20 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.
Issue:	Reverse convertible notes
Underlying security:	Best Buy Co., Inc.
Amount:	$700,000
Maturity:	March 29, 2007
Coupon:	14.5%
Payment at maturity:	If Best Buy stock falls below the contingent protection level of $44.16 during the life of the notes and finishes below the initial price, payout will be $1,000 divided by the $55.20 initial price, in stock (18 shares plus fractions in cash) or equivalent in cash; otherwise par
Initial price:	$55.20
Contingent protection level:	$44.16, 80% of the initial level
Pricing date:	Sept. 26
Settlement date:	Sept. 29
Agent:	Bear, Stearns & Co. Inc.

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