New Issue: Bear Stearns prices $1.1 million 10.5% reverse convertibles linked to Caterpillar

By Jennifer Chiou

New York, July 6 - Bear Stearns Cos. Inc. priced a $1.1 million issue of 10.5% reverse convertible notes due July 6, 2007 linked to Caterpillar Inc. stock, according to a 424B5 filing with the Securities and Exchange Commission.

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, the payout is par.

Issuer:	The Bear Stearns Cos. Inc.
Issue:	Reverse convertible notes
Underlying stock:	Caterpillar Inc.
Amount:	$1.1 million
Maturity:	July 6, 2007
Coupon:	10.5%, payable monthly
Price:	Par
Payout at maturity:	Par unless Caterpillar stock falls by 20% or more 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
Initial share price:	$74.48
Protection price:	$59.58, 80% of the initial share price
Pricing date:	June 30
Settlement date:	July 6
Agent:	Bear, Stearns & Co., Inc.

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