New Issue: Bear Stearns prices $1.1 million 12% reverse convertibles linked to Freeport-McMoRan

By Laura Lutz

Des Moines, Dec. 28 - Bear Stearns Cos. Inc. priced $1.1 million of 12% reverse convertible notes due Dec. 29, 2007 linked to Freeport-McMoRan Copper & Gold Inc. class B stock, according to a 424B5 filing with the Securities and Exchange Commission.

If Freeport-McMoRan class B stock falls to or below the contingent protection level of $40.38, 75% 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 $53.84 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:	Freeport-McMoRan Copper & Gold Inc. class B common stock
Amount:	$1.1 million
Maturity:	Dec. 29, 2007
Coupon:	12%, payable quarterly
Payment quarterly:	If Freeport-McMoRan stock falls below the contingent protection level of $40.38 during the life of the notes and finishes below the initial price, payout will be $1,000 divided by the $53.84 initial price, in stock (12 shares plus fractions in cash) or equivalent in cash; otherwise par
Initial price:	$53.84
Contingent protection level:	$40.38, 75% of the initial level
Pricing date:	Dec. 22
Settlement date:	Dec. 29
Agent:	Bear, Stearns & Co. Inc.

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