PRICING SUPPLEMENT NO. 18 Rule 424(b)(3)
DATED: June 19, 2003 File No. 333-104455
(To Prospectus dated April 24, 2003,
and Prospectus Supplement dated April 24, 2003)
$10,227,293,162
THE BEAR STEARNS COMPANIES INC.
Medium-Term Notes, Series B
Principal Amount: $5,000,000 Floating Rate Notes [x] Book Entry Notes [x]
Original Issue Date: 7/8/2003 Fixed Rate Notes [ ] Certificated Notes [ ]
Maturity Date: 7/8/2018 CUSIP#: 073928A45
Option to Extend Maturity: No [x]
Yes [ ] Final Maturity Date:
Optional Optional
Redemption Repayment Repayment
Redeemable On Price(s) Date(s) Price(s)
------------- -------------- ------------- -----------
* N/A N/A N/A
Applicable Only to Fixed Rate Notes:
-----------------------------------
Interest Rate:
Interest Payment Dates:
Applicable Only to Floating Rate Notes:
--------------------------------------
Interest Rate Basis:** Maximum Interest Rate: 7.25%
[ ] Commercial Paper Rate Minimum Interest Rate: 0%
[ ] Federal Funds Effective Rate
[ ] Federal Funds Open Rate Interest Reset Date(s): N/A
[ ] Treasury Rate Interest Reset Period: Quarterly
[ ] LIBOR Reuters Interest Payment Date(s): ***
[x] LIBOR Telerate
[ ] Prime Rate
[ ] CMT Rate
Initial Interest Rate: 7.25% Interest Payment Period: Quarterly
Index Maturity: Six Months
Spread (plus or minus): N/A
* Commencing July 8, 2004 and on each interest payment date thereafter until
Maturity, the Notes may be called in whole at par at the option of the
Company on five business days notice.
** Interest will accrue daily at a rate of 7.25% per annum, subject to the
condition that 6 month LIBOR on each such day is within the following
ranges:
from and including 7/8/03, to but excluding 7/8/08 -- 0.00% to 5.00%
from and including 7/8/08, to but excluding 7/8/13 -- 0.00% to 6.00%
from and including 7/8/13, to but excluding 7/8/18 -- 0.00% to 7.00%
However, if the 6 month LIBOR on any day in the interest payment period is
outside of the applicable range, then no interest will accrue on any such day.
Interest, with respect to each interest payment period, will be calculated at a
rate of 7.25% x n/N, where n = the number of days in the interest payment period
where 6 Month LIBOR falls within the ranges specified above and N = the actual
number of days in the interest payment period.
Interest is calculated on the basis of twelve 30-day months and a 360-day year.
*** On the 8th of each October, January, April and July, including the
maturity date.
At February 28, 2003:
o the Company had outstanding (on an unconsolidated basis)
approximately $37.4 billion of debt and other obligations, including
approximately $34.3 billion of unsecured senior debt and $2.6
billion of unsecured inter-company debt; and
o subsidiaries of the Company had outstanding (after elimination of
inter-company items) approximately $145.5 billion of debt and other
obligations (including $47.9 billion related to securities sold
under repurchase agreements, $52.9 billion related to payables to
customers, $26.4 billion related to financial instruments sold, but
not yet purchased, and $18.3 billion of other liabilities, including
$13.6 billion of debt).
The distribution of Notes will conform to the requirements set forth in Rule
2720 of the NASD Conduct Rules.