New Issue: Bear Stearns prices $550,000 10.5% reverse convertibles linked to Caterpillar

By Susanna Moon

Chicago, Jan. 22 - Bear Stearns Cos. Inc. priced a $550,000 issue of 10.5% reverse convertible notes due Jan. 23, 2009 linked to Caterpillar Inc. stock, according to a 424B5 filing with the Securities and Exchange Commission.

The payout at maturity will be par unless Caterpillar stock falls by 30% or more during the life of the notes and finishes below the initial share price, in which case investors will receive a number of Caterpillar shares equal to $1,000 divided by the initial share price or the cash equivalent.

Bear, Stearns & Co., Inc. is the agent.

Issuer:	Bear Stearns Cos. Inc.
Issue:	Reverse convertible notes
Underlying stock:	Caterpillar Inc. (NYSE: CAT)
Amount:	$550,000
Maturity:	Jan. 23, 2009
Coupon:	10.5%, payable monthly
Price:	Par
Payout at maturity:	Par unless Caterpillar stock falls by 30% or more during the life of the notes and finishes below the initial share price, in which case a number of Caterpillar shares equal to $1,000 divided by the initial share price or the cash equivalent
Initial share price:	$62.47
Protection price:	$43.729, or 70% of the initial share price
Pricing date:	Jan. 17
Settlement date:	Jan. 23
Agent:	Bear, Stearns & Co., Inc.
Fees:	1%

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