Bear Stearns plans issue of 10.5% contingent protection notes linked to Caterpillar

By Jennifer Chiou

New York, June 26 - Bear Stearns Cos. Inc. plans to price an issue of one-year contingent protection notes linked to Caterpillar Inc. stock, according to an FWP filing with the Securities and Exchange Commission.

The coupon is talked at 10.5%.

The pricing date and settlement date are expected to be June 30 and July 6, respectively.

If Caterpillar stock falls by 20% or more during the life of the notes and the stock finishes below the initial share price, payout will be cash, with a full exposure to the stock's decline, or a number of Caterpillar shares equal to $1,000 divided by the initial share price.

Otherwise, payout is par.

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