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PRICING SUPPLEMENT NO. 3 Rule 424(b)(3)
DATED: January 7, 1994 File No. 33-51733
(To Prospectus dated January 7, 1994
and Prospectus Supplement dated January 7, 1994)
$1,500,945,000
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
$67,000,000 [x] [x]
Original Issue Date: Fixed Rate Notes Certificated Notes
1/14/94 [_] [_]
Maturity Date: 1/14/99
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
[_] LIBOR Interest Payment Date(s): ***
[_] Prime Rate
Initial Interest Rate: 4.09% Interest Payment Period: Quarterly
Index Maturity: N/A
Spread (plus or minus): -0-
- -------------------------
* The interest rate basis shall be (a) as displayed on Telerate page
7059 for "Daily Treasury Constant Maturities...Federal Reserve Board
Release H.15 Mondays approx. 3:45 EDT", under the heading "2-Year", or
such page as may replace that page on such service for the purpose of
displaying rates or prices comparable to the 2-year CMT as determined
by the Calculation Agent (after consultation with the Company), (b) if
such rate is no longer displayed on the Calculation Date pertaining to
such Interest Determination Date, then the 2-year Treasury Constant
Maturity rate (or other 2-year United States Treasury rate) as may
then be published by either the Board of Governors of the Federal
Reserve System or the United States Department of the Treasury that
the Calculation Agent (after consultation with the Company) determines
to be comparable to the rate formerly displayed on Telerate page 7059
and published in the Federal Reserve Board Statistical Release H.15
(519), (c) if such information is not provided on the Calculation Date
pertaining to such Interest Determination Date, then the CMT shall be
calculated by the Calculation Agent and shall be a yield to maturity
determined as the arithmetic mean on the basis of the secondary market
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closing bid side prices as of approximately 3:00 P.M., New York City
time, reported, according to their written records, by three leading
primary United States government securities dealers (each a "Reference
Dealer") in the New York City area selected by the Calculation Agent
(after consultation with the Company), for the most recently issued
direct non-callable fixed rate obligations of the United States (a
"Treasury Note") with an original maturity of approximately two years
and a remaining term to maturity of not less than one year, (d) if
three such Treasury Note quotations are not available on the
Calculation Date pertaining to such Interest Determination Date, then
the CMT shall be calculated by the Calculation Agent and shall be a
yield to maturity determined as the arithmetic mean on the basis of
the secondary market bid side prices as of approximately 3:00 P.M.,
New York City time, of three leading United States government
securities dealers for non-callable Treasury Notes with an original
maturity of approximately two years and a remaining term to maturity
closest to two years, or (e) if these quotes cannot be obtained on the
Calculation Date pertaining to such Interest Determination Date, then
the CMT shall be calculated by the Calculation Agent and shall be a
yield to maturity determined as the arithmetic mean on the basis of
the secondary market bid side prices as of approximately 3:00 P.M.,
New York City time, of all quotes obtained for non-callable Treasury
Notes with an original maturity of approximately two years and a
remaining term to maturity closest to two years, in each case adjusted
by the addition or subtraction of the Spread, if any, specified on the
face hereof; provided, however, that if such quotations are not
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available, the interest rate in effect hereon until the Interest Reset
Date next succeeding the Interest Reset Date to which such Interest
Determination Date relates shall be the rate in effect on the Interest
Determination Date next preceding such Interest Reset Date in each
case.
** 4/14/94, 7/14/94, 10/14/94, 1/17/95, 4/17/95, 7/14/95, 10/16/95,
1/16/96, 4/15/96, 7/15/96, 10/15/96, 1/14/97, 4/14/97, 7/14/97,
10/14/97, 1/14/98, 4/14/98, 7/14/98
and 10/14/98.
*** 4/14/94, 7/14/94, 10/14/94, 1/17/95, 4/17/95, 7/14/95, 10/16/95,
1/16/96, 4/15/96, 7/15/96, 10/15/96, 1/14/97, 4/14/97, 7/14/97,
10/14/97, 1/14/98, 4/14/98, 7/14/98,
10/14/98 and 1/14/99.
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.
