Filed Pursuant to Rule 433
Registration No. 333-121744
February 13, 2006
BEAR STEARNS
Accelerated
Market
Participation
Securities
BEAR, STEARNS & CO. INC.
Structured Products Group
(212) 272-6928
STRUCTURED EQUITY PRODUCTS
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New Issue Indicative Terms
[GRAPHIC OMITTED]
The Bear Stearns Companies Inc.
Note Linked to the S&P 500(R) Index
Due: March [ ], 2007
INVESTMENT HIGHLIGHTS
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o 13-month term to maturity.
o The Notes are not principal protected.
o Issue is a direct obligation of The Bear Stearns Companies Inc. (Rated A1
by Moody's / A by S&P).
o Issue Price: 100.00% of the Principal Amount ($1,000).
o Linked to the S&P 500(R) Index.
o Depending upon the value of the Index at Maturity, the Note will pay 2
times the percent increase in the Index, up to a maximum return of
+[14.20]%.
o If the Index declines in value by the Maturity Date, the Note will lose
value at a rate of 1% for every 1% decline in the Index from the Initial
Index level.
The issuer has filed a registration statement (including a prospectus) with the
SEC for the offering to which this free writing prospectus relates. Before you
invest, you should read the prospectus in that registration statement and other
documents the issuer has filed with the SEC for more complete information about
the issuer and this offering. You may get these documents for free by visiting
EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any
underwriter or any dealer participating in the offering will arrange to send you
the prospectus if you request it by calling toll free 1-866-803-9204.
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BEAR
STEARNS STRUCTURED PRODUCTS GROUP
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TERMS OF OFFERING
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Issuer: The Bear Stearns Companies Inc.
Issuer's Rating: A1 / A (Moody's / S&P)
CUSIP Number: 073928N74
Issue Price: 100.00% of the Principal Amount.
Principal Amount: [ ]
Denominations: $1,000 per Note and $1,000 multiples thereafter.
Selling Period Ends: February [ ], 2006
Settlement Date: February [ ], 2006
Calculation Date: March [ ], 2007
Maturity Date: March [ ], 2007 (for a term of approximately
13-months)
Cash Settlement Value: On the Maturity Date you will receive the Cash
Settlement Value, an amount in cash that depends upon
the relation of the Final Index Level to the Initial
Index Level. If, at maturity, the Final Index Level is
greater than or equal to the Initial Index Level, we
will pay you the principal amount of the Notes, plus
the lesser of:
[ / \ [
| | Final Index Level | |
$1,000 x | 200% x | ------------------- - 100% | |, and
| | Initial Index Level | |
[ \ / [
$[142.00]
If, at maturity, the Final Index Level is less than
the Initial Index Level, you will receive less and
possibly significantly less, than the principal you
invested. In this case, we will pay you, per Note:
/ \
| Final Index Level |
$1,000 x | ------------------- |
| Initial Index Level |
\ /
Initial Index Level: The closing value of the Index on February [ ], 2006.
Final Index Level: The closing value of the Index on the Calculation
Date.
Index: S&P 500 Composite Price Index (SPX).
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BEAR
STEARNS STRUCTURED PRODUCTS GROUP
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ADDITIONAL TERMS SPECIFIC TO THE NOTES
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You should read this document together with the Prospectus, as supplemented by
the Prospectus Supplement, each dated February 2, 2005, and the more detailed
information contained in the Pricing Supplement, dated February 13, 2006. You
should carefully consider, among other things, the matters set forth in "Risk
Factors" in the Pricing Supplement, as the Notes involve risks not associated
with conventional debt securities. We urge you to consult your investment,
legal, tax, accounting and other advisers before you invest in the Notes. The
Pricing Supplement, dated February 13, 2006, and the accompanying Prospectus and
Prospectus Supplement, each dated February 2, 2005 may be accessed on the SEC
Web site at www.sec.gov as follows:
http://www.sec.gov/Archives/edgar/data/777001/000104746906001863/a2167473z424b5.
htm
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ILLUSTRATIVE CASH SETTLEMENT VALUE TABLE
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The following is an illustrative table demonstrating the hypothetical Cash
Settlement Value of a Note based on the assumptions listed below. Actual returns
may be different.
Assumptions:
o Investor purchases $1,000 principal amount of Notes at the initial
offering price of $1,000.
o Investor does not sell the Notes and holds the Notes to maturity.
o The Initial Index Level is equal to 1,260.00.
o All returns are based on a 13-month term; pre-tax basis.
o No Market Disruption Events or Events of Default occur during the
term of the Notes.
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Cash Cash
Initial Final Percentage Settlement Return if Initial Final Percentage Settlement Return if
Index Index Change in Value Per Held to Index Index Change in Value Per Held to
Level Level Index Note Maturity Level Level Index Note Maturity
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1,260.00 1,540.00 22.22% $1,142.00 14.20% 1,260.00 1,250.00 -0.79% $992.06 -0.79%
1,260.00 1,530.00 21.43% $1,142.00 14.20% 1,260.00 1,240.00 -1.59% $984.13 -1.59%
1,260.00 1,520.00 20.63% $1,142.00 14.20% 1,260.00 1,230.00 -2.38% $976.19 -2.38%
1,260.00 1,510.00 19.84% $1,142.00 14.20% 1,260.00 1,220.00 -3.17% $968.25 -3.17%
1,260.00 1,500.00 19.05% $1,142.00 14.20% 1,260.00 1,210.00 -3.97% $960.32 -3.97%
1,260.00 1,490.00 18.25% $1,142.00 14.20% 1,260.00 1,200.00 -4.76% $952.38 -4.76%
1,260.00 1,480.00 17.46% $1,142.00 14.20% 1,260.00 1,190.00 -5.56% $944.44 -5.56%
1,260.00 1,470.00 16.67% $1,142.00 14.20% 1,260.00 1,180.00 -6.35% $936.51 -6.35%
1,260.00 1,460.00 15.87% $1,142.00 14.20% 1,260.00 1,170.00 -7.14% $928.57 -7.14%
1,260.00 1,450.00 15.08% $1,142.00 14.20% 1,260.00 1,160.00 -7.94% $920.63 -7.94%
1,260.00 1,440.00 14.29% $1,142.00 14.20% 1,260.00 1,150.00 -8.73% $912.70 -8.73%
1,260.00 1,430.00 13.49% $1,142.00 14.20% 1,260.00 1,140.00 -9.52% $904.76 -9.52%
1,260.00 1,420.00 12.70% $1,142.00 14.20% 1,260.00 1,130.00 -10.32% $896.83 -10.32%
1,260.00 1,410.00 11.90% $1,142.00 14.20% 1,260.00 1,120.00 -11.11% $888.89 -11.11%
1,260.00 1,400.00 11.11% $1,142.00 14.20% 1,260.00 1,110.00 -11.90% $880.95 -11.90%
1,260.00 1,390.00 10.32% $1,142.00 14.20% 1,260.00 1,100.00 -12.70% $873.02 -12.70%
1,260.00 1,380.00 9.52% $1,142.00 14.20% 1,260.00 1,090.00 -13.49% $865.08 -13.49%
1,260.00 1,370.00 8.73% $1,142.00 14.20% 1,260.00 1,080.00 -14.29% $857.14 -14.29%
1,260.00 1,360.00 7.94% $1,142.00 14.20% 1,260.00 1,070.00 -15.08% $849.21 -15.08%
1,260.00 1,350.00 7.14% $1,142.00 14.20% 1,260.00 1,060.00 -15.87% $841.27 -15.87%
1,260.00 1,340.00 6.35% $1,126.98 12.70% 1,260.00 1,050.00 -16.67% $833.33 -16.67%
1,260.00 1,330.00 5.56% $1,111.11 11.11% 1,260.00 1,040.00 -17.46% $825.40 -17.46%
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BEAR
STEARNS STRUCTURED PRODUCTS GROUP
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Cash Cash
Initial Final Percentage Settlement Return if Initial Final Percentage Settlement Return if
Index Index Change in Value Per Held to Index Index Change in Value Per Held to
Level Level Index Note Maturity Level Level Index Note Maturity
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1,260.00 1,320.00 4.76% $1,095.24 9.52% 1,260.00 1,030.00 -18.25% $817.46 -18.25%
1,260.00 1,310.00 3.97% $1,079.37 7.94% 1,260.00 1,020.00 -19.05% $809.52 -19.05%
1,260.00 1,300.00 3.17% $1,063.49 6.35% 1,260.00 1,010.00 -19.84% $801.59 -19.84%
1,260.00 1,290.00 2.38% $1,047.62 4.76% 1,260.00 1,000.00 -20.63% $793.65 -20.63%
1,260.00 1,280.00 1.59% $1,031.75 3.17% 1,260.00 990.00 -21.43% $785.71 -21.43%
1,260.00 1,270.00 0.79% $1,015.87 1.59% 1,260.00 980.00 -22.22% $777.78 -22.22%
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1,260.00 1,260.00 0.00% $1,000.00 0.00% 1,260.00 970.00 -23.02% $769.84 -23.02%
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The Chart below sets forth the information provided in the table above and
depicts the hypothetical Cash Settlement Values for the Note structure as the
value of the Index changes.
[The following data is represented by a single graph containing 2 line charts in
the printed material.]
Hypothetical Final
Hypothetical Final Index Index Levels (Initial Performance
Levels (Initial Index Level = Hypothetical Cash Index Level = Hypothetical Cash of the
1,260.00) Settlement Value Performance of the Index 1,260.00) Settlement Value Index
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1,670.00 1,142.00 1,325.40 1,310.00 1,079.37 1,039.68
1,660.00 1,142.00 1,317.46 1,300.00 1,063.49 1,031.75
1,650.00 1,142.00 1,309.52 1,290.00 1,047.62 1,023.81
1,640.00 1,142.00 1,301.59 1,280.00 1,031.75 1,015.87
1,630.00 1,142.00 1,293.65 1,270.00 1,015.87 1,007.94
1,620.00 1,142.00 1,285.71 1,260.00 1,000.00 1,000.00
1,610.00 1,142.00 1,277.78 1,250.00 992.06 992.06
1,600.00 1,142.00 1,269.84 1,240.00 984.13 984.13
1,590.00 1,142.00 1,261.90 1,230.00 976.19 976.19
1,580.00 1,142.00 1,253.97 1,220.00 968.25 968.25
1,570.00 1,142.00 1,246.03 1,210.00 960.32 960.32
1,560.00 1,142.00 1,238.10 1,200.00 952.38 952.38
1,550.00 1,142.00 1,230.16 1,190.00 944.44 944.44
1,540.00 1,142.00 1,222.22 1,180.00 936.51 936.51
1,530.00 1,142.00 1,214.29 1,170.00 928.57 928.57
1,520.00 1,142.00 1,206.35 1,160.00 920.63 920.63
1,510.00 1,142.00 1,198.41 1,150.00 912.70 912.70
1,500.00 1,142.00 1,190.48 1,140.00 904.76 904.76
1,490.00 1,142.00 1,182.54 1,130.00 896.83 896.83
1,480.00 1,142.00 1,174.60 1,120.00 888.89 888.89
1,470.00 1,142.00 1,166.67 1,110.00 880.95 880.95
1,460.00 1,142.00 1,158.73 1,100.00 873.02 873.02
1,450.00 1,142.00 1,150.79 1,090.00 865.08 865.08
1,440.00 1,142.00 1,142.86 1,080.00 857.14 857.14
1,430.00 1,142.00 1,134.92 1,070.00 849.21 849.21
1,420.00 1,142.00 1,126.98 1,060.00 841.27 841.27
1,410.00 1,142.00 1,119.05 1,050.00 833.33 833.33
1,400.00 1,142.00 1,111.11 1,040.00 825.40 825.40
1,390.00 1,142.00 1,103.17 1,030.00 817.46 817.46
1,380.00 1,142.00 1,095.24 1,020.00 809.52 809.52
1,370.00 1,142.00 1,087.30 1,010.00 801.59 801.59
1,360.00 1,142.00 1,079.37 1,000.00 793.65 793.65
1,350.00 1,142.00 1,071.43 990.00 785.71 785.71
1,340.00 1,126.98 1,063.49 980.00 777.78 777.78
1,330.00 1,111.11 1,055.56 970.00 769.84 769.84
1,320.00 1,095.24 1,047.62 960.00 761.90 761.90
950.00 753.97 753.97
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BEAR
STEARNS STRUCTURED PRODUCTS GROUP
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SELECTED RISK CONSIDERATIONS
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o Suitability of Note for Investment - A person should reach a
decision to invest in the Notes after carefully considering, with
his or her advisors, the suitability of the Notes in light of his or
her investment objectives and the information set out in the Pricing
Supplement. Neither the Issuer nor any dealer participating in the
offering makes any recommendation as to the suitability of the Notes
for investment.
o Not Principal Protected - The Notes are not principal protected. If
the Final Index Level is less than the Initial Index Level, there
will be no principal protection on the Notes and the Cash Settlement
Value you will receive will be less than the initial offering price
in proportion to the percentage decline in the Index. In that case,
you will receive less, and possibly significantly less, than the
original public offering price of $1,000.
o Maximum return of [14.20]% -- You will not receive more than the
maximum return of [14.20]% at maturity. Because the maximum return
on the Notes is [14.20]%, the maximum Cash Settlement Value is
[14.20]%. Therefore, the Cash Settlement Value will not reflect the
increase in the value of the Notes if the Initial Index Level
increases by more than [7.10]%.
o Secondary Market - Because the Notes will not be listed on any
securities exchange, a secondary trading market is not expected to
develop, and, if such a market were to develop, it may not be
liquid. Bear, Stearns & Co. Inc. intends under ordinary market
conditions to indicate prices for the Notes on request. However,
there can be no guarantee that bids for outstanding Notes will be
made in the future; nor can the prices of those bids be predicted.
o No interest, dividend or other payments -- You will not receive any
interest, dividend payments or other distributions on the stocks
underlying the Index, nor will such payments be included in the
calculation of the Cash Settlement Value you will receive at
maturity.
o Taxes - The U.S. federal income tax consequences of an investment in
the Notes are complex and uncertain. We intend to treat the Notes
for all tax purposes as pre-paid cash-settled executory contracts
linked to the value of the Index and, where required, to file
information returns with the Internal Revenue Service in accordance
with such treatment. Prospective investors are urged to consult
their tax advisors regarding the U.S. federal income tax
consequences of an investment in the Notes. Assuming the Notes are
treated as pre-paid cash-settled executory contracts, you should be
required to recognize capital gain or loss to the extent that the
cash you receive on the Maturity Date or upon a sale or exchange of
the Notes prior to the Maturity Date differs from your tax basis on
the Notes (which will generally be the amount you paid for the
Notes).
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