Bear Stearns to price 17% reverse convertibles linked to United States Steel

By Jennifer Chiou

New York, March 6 - Bear Stearns Cos. Inc. plans to price an issue of reverse convertible notes due June 2007 linked to the common stock of United States Steel Corp., according to an FWP filing with the Securities and Exchange Commission.

The three-month notes will pay 4.25% for an annualized rate of 17%. Interest will be paid at maturity.

At maturity, investors will receive par unless United States Steel stock falls below the knock-in price - 80% of the initial share price - during the life of the notes and finishes below the initial share price, in which case the payout will be a number of United States Steel shares equal to $1,000 divided by the initial share price.

The notes will price and settle in March.

Bear, Stearns & Co. Inc. will be the agent.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.