Published on 9/27/2007 in the Prospect News Structured Products Daily.
New Issue: Bear Stearns prices $1 million 18.1% reverse convertibles linked to Amazon
By Susanna Moon
Chicago, Sept. 27 - Bear Stearns Cos. Inc. priced a $1 million issue of 18.1% reverse convertible notes due Dec. 28, 2007 linked to the stock of Amazon.com, Inc., according to a 424B5 filing with the Securities and Exchange Commission.
Interest is payable annually.
The payout at maturity will be par unless the stock hits the protection level of $70.088 during the life of the notes and finishes below the initial share price of $93.45, in which case the payout will be a number of Amazon 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: | Amazon.com, Inc. (Nasdaq: AMZN)
|
| Amount: | $1 million
|
| Maturity: | Dec. 28, 2007
|
| Coupon: | 18.1%, payable annually
|
| Price: | Par
|
| Payout at maturity: | If the 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: | $93.45
|
| Protection level: | $70.088, or 75% of initial share price
|
| Pricing date: | Sept. 25
|
| Settlement date: | Sept. 28
|
| Agent: | Bear, Stearns & Co. Inc.
|
| Fees: | 0.75%
|
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