<PAGE>
PRICING SUPPLEMENT NO. 27 Rule 424(b)(3)
DATED: August 5, 1994 File No. 33-52701
(To Prospectus dated April 8, 1994
and Prospectus Supplement dated April 8, 1994)
$2,873,608,750
THE BEAR STEARNS COMPANIES INC.
MEDIUM-TERM NOTES, SERIES B
WITH MINIMUM MATURITY OF NINE MONTHS FROM DATE OF ISSUE
Principal Amount: Floating Rate Notes Book Entry Notes
$25,000,000 [x] [x]
Original Issue Date: Fixed Rate Notes Certificated Notes
8/24/94 [_] [_]
Maturity Date: 8/24/95
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 N/A
Applicable Only to Fixed Rate Notes:
- -----------------------------------
Interest Rate:
Applicable Only to Floating Rate Notes:
- --------------------------------------
Interest Rate Basis: Maximum Interest Rate: N/A
[_] Commercial Paper Rate Minimum Interest Rate: N/A
[_] Federal Funds Rate Interest Reset Date(s): *
[_] Treasury Rate Interest Reset Period: Quarterly
[x] LIBOR*** Interest Payment Date(s): **
[_] Prime Rate
Initial Interest Rate: **** Interest Payment Period: Quarterly
Index Maturity: Three Months
Spread (plus or minus): +.90%
- -------------------------
* 11/25/94, 2/24/95, and 5/24/95.
** 11/25/94, 2/24/95, 5/24/95 and 8/24/95.
*** For purposes of this Note, LIBOR will be determined by the
Calculation Agent in accordance with the provisions of (i) and (ii),
and interest will be payable subject to the provisions of (iii) and
(iv), below:
(i) With respect to an Interest Determination Date, LIBOR will be
determined on the basis of the offered rate for deposits in U.S. dollars
having the Index Maturity specified above, which appears on Telerate page 3750
(or such other page as may replace such Telerate page 3750 for the purpose of
displaying London interbank rates of major banks), as of 11:00 A.M., London
time, on such Interest Determination Date. If no such rate appears on Telerate
page 3750 (or such other page), LIBOR for such Interest Determination Date will
be determined as if the parties had specified the rate described in (ii)
below.
(ii) With respect to an Interest Determination Date on which no
offered rate appears on Telerate page 3750 (or such other page) as
described in (i) above, LIBOR will be determined on the basis of the rates
at approximately 11:00 A.M., London time, on such Interest Determination
Date at which deposits in U.S. dollars having the Index Maturity specified
<PAGE>
<PAGE>
above are offered to prime banks in the London interbank market by five
major banks in the London interbank market selected by the Calculation
Agent commencing on the second London Banking Day immediately following
such Interest Determination Date and in a principal amount equal to an
amount of not less than $1,000,000 that is representative of a single
transaction in such market at such time. The Calculation Agent will
request the principal London office of each of such banks to provide a
quotation of its rate. If at least two such quotations are provided,
LIBOR for such Interest Determination Date will be the arithmetic mean of
such quotations. If fewer than two quotations are provided, LIBOR for such
Interest Determination Date will be the arithmetic mean of the rates quoted
at approximately 11:00 A.M., New York City time, on such Interest Determination
Date by three major banks in the City of New York, selected by the Calculation
Agent for loans in U.S. dollars to leading European banks, having the specified
Index Maturity commencing on the second London Banking Day immediately
following such Interest Determination Date and in a principal amount equal to
an amount of not less than $1,000,000 that is representative of a single
transaction in such market at such time; provided, however, that if the banks
selected as aforesaid by the Calculation Agent are not quoting as mentioned
in this sentence, LIBOR will be LIBOR in effect on the immediately preceding
Interest Determination Date.
(iii) Interest will accrue for each day (a "LIBOR-2 Determination
Date") that LIBOR-2 (as defined below) is greater than or equal to LIBOR
minus 25 basis points, and less than or equal to LIBOR plus 75 basis
points; otherwise, no interest will accrue for such day. LIBOR-2 will be
determined on the basis of the offered rate for deposits in U.S. dollars
having the Index Maturity specified above, for each day during the Interest
Payment Period (subject to the Rate Cut-Off Date, as defined below), which
appears on Telerate page 3747 (or such other page as may replace such
Telerate page 3747 for the purpose of displaying London interbank rates of
major banks), as of 11:00 A.M., London time, commencing on the second London
Banking Day immediately following such day. If no such rate appears on
Telerate page 3747 (or such other page), LIBOR-2 for such Interest
Determination Date will be determined as if the parties had specified
the rate described in (iv) below. The LIBOR-2 applicable to the day that
is two New York Business Days prior to an Interest Payment Date (the
"Rate Cut-Off Date") will remain in effect until such Interest Payment
Date.
(iv) With respect to any LIBOR-2 Determination Date on which no
offered rate appears on Telerate page 3747 (or such other page) as
described in (iii) above, LIBOR-2 will be determined on the basis of the
rates at approximately 11:00 A.M., London time, on such LIBOR-2
Determination Date at which deposits in U.S. dollars having the Index
Maturity specified above are offered to prime banks in the London interbank
market by five major banks in the London interbank market selected by the
Calculation Agent commencing on the second London Banking Day immediately
following such LIBOR-2 Determination Date and in a principal amount equal to an
amount of not less than $1,000,000 that is representative of a single
transaction in such market at such time. The
Calculation Agent will request the principal London office of each of such
banks to provide a quotation of its rate. If at least two such quotations
are provided, LIBOR-2 for such LIBOR-2 Determination Date will be the
arithmetic mean of such quotations. If fewer than two quotations are
provided, LIBOR-2 for such day will be the arithmetic mean of the rates
quoted at approximately 11:00 A.M., New York City time, on such day by
three major banks in the City of New York, selected by the Calculation
Agent for loans in U.S. dollars to leading European banks, having the
specified Index Maturity commencing on the second London Banking Day
immediately following such day and in a principal amount equal to an
amount of not less than $1,000,000 that is representative of a single
transaction in such market at such time; provided, however, that if the
banks selected as aforesaid by the Calculation Agent are not quoting as
mentioned in this sentence, LIBOR-2 will be LIBOR-2 in effect on the
immediately preceding London Business Day.
**** Three month LIBOR rate as of August 22, 1994 plus 90 basis points.
The distribution of Notes will conform to the requirements set forth in the
applicable sections of Schedule E to the By-laws of the National
Association of Securities Dealers,
Inc.
