New Issue: Bear Stearns prices $500,000 10% reverse convertibles linked to Texas Instruments

By Jennifer Chiou

New York, Nov. 14 - Bear Stearns Cos. Inc. priced a $500,000 issue of 10% annualized reverse convertible notes due May 15, 2008 linked to the stock of Texas Instruments Inc., according to a 424B5 filing with the Securities and Exchange Commission.

The payout at maturity will be par unless the stock hits the protection level of $25.416 during the life of the notes and finishes below the initial share price of $31.77, in which case the payout will be a number of Texas Instruments 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:	Texas Instruments Inc. (Symbol: TXN)
Amount:	$500,000
Maturity:	May 15, 2008
Coupon:	10%, payable at maturity
Price:	Par
Payout at maturity:	If Texas Instruments 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:	$31.77
Protection level:	$25.416, 80% of initial share price
Pricing date:	Nov. 9
Settlement date:	Nov. 15
Agent:	Bear, Stearns & Co. Inc.
Fees:	1%

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