By Jennifer Chiou
New York, July 20 - The Bear Stearns Cos. Inc. priced $75,039,438.02 of notes due June 20, 2027 linked to the Alerian MLP Select index, according to a 424B5 filing with the Securities and Exchange Commission.
The index is designed to track liquid master limited partnerships listed on the New York Stock Exchange and Nasdaq that own mid-stream U.S. energy infrastructural assets such as pipelines.
The notes will pay a coupon each month equal to the amount, if any, by which the cash dividends of the index constituents exceed the tracking fee. The fee is 0.85% per year, or 0.070834% per month.
The payout at maturity will be par plus the index return - as measured by the change in the volume-weighted average prices of the index constituents over the life of the notes - minus the accrued tracking fee.
The notes will be putable on the last business day of each week. The redemption amount will be par plus the index return, minus the tracking fee and minus a redemption fee of 0.125%. The minimum redemption amount is 75,000 notes.
Bear Stearns said it will list the notes on the NYSE under the symbol "BSR."
Bear, Stearns & Co. Inc. is the underwriter.
| Issuer: | Bear Stearns Cos. Inc.
|
| Issue: | Medium-term series B notes
|
| Underlying index: | Alerian MLP Select index
|
| Amount: | $75,039,438.02
|
| Maturity: | June 20, 2027
|
| Coupon: | Equal to the amount, if any, by which the cash dividends of the index constituents exceed the tracking fee of 0.85% per year
|
| Price: | Par of $38.8915
|
| Payout at maturity: | Par plus the index return minus the accrued tracking fee of 0.85% per year; investors share in losses
|
| Put: | On the last day of each week at par plus the index return, minus the tracking fee and redemption fee of 0.125%; 75,000-note minimum redemption amount
|
| Initial VWAP level: | 388.915
|
| Pricing date: | July 19
|
| Settlement date: | July 20
|
| Underwriter: | Bear, Stearns & Co. Inc.
|
| Listing: | NYSE: BSR
|
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