New Issue: Bear Stearns prices $650,000 15.5% reverse convertibles linked to Sotheby's

By Laura Lutz

Washington, Dec. 12 - Bear Stearns Cos. Inc. priced an issue of $650,000 of 15.5% reverse convertible notes due June 13, 2007 linked to Sotheby's stock, according to a 424B5 filing with the Securities and Exchange Commission.

If Sotheby's stock falls to or below the contingent protection level of $24.00, 75% of the initial level, during the life of the notes and the stock finishes below the initial share price, the payout will be $1,000 divided by the $32.00 initial price, in stock (31 shares plus fractions in cash) or the equivalent in cash.

Otherwise, payout is par.

Issuer:	The Bear Stearns Cos. Inc.
Issue:	Reverse convertible notes
Underlying security:	Sotheby's common stock
Amount:	$650,000
Maturity:	June 13, 2007
Coupon:	15.5%, payable at maturity
Payment at maturity:	If Sotheby's stock falls below the contingent protection level of $24.00 during the life of the notes and finishes below the initial price, payout will be $1,000 divided by the $32.00 initial price, in stock (31 shares plus fractions in cash) or equivalent in cash; otherwise par
Initial price:	$32.00
Contingent protection level:	$24.00, 75% of the initial level
Pricing date:	Dec. 8
Settlement date:	Dec. 13
Agent:	Bear, Stearns & Co. Inc.

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