Published on 12/31/2008 in the Prospect News Structured Products Daily.
New Issue: JPMorgan sells $1.58 million 21.1% reverse exchangeables linked to Apple
By Susanna Moon
Chicago, Dec. 26 - JPMorgan Chase & Co. priced a $1.58 million issue of 21.1% upside auto callable reverse exchangeable notes due June 26, 2008 linked to the common stock of Apple Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable monthly.
If the stock closes above its initial share price on March 24, 2008, the notes will be called and investors will receive par plus accrued interest until the settlement date.
If the notes are not called, the payout at maturity will be par plus accrued interest unless the stock falls by more than 30% during the life of the notes, in which case the payout will be a number of Apple shares equal to $1,000 divided by the initial share price or, at JPMorgan's election, the cash equivalent.
If the notes are not called, the payout at maturity will be par.
J.P. Morgan Securities Inc. is the agent.
| Issuer: | JPMorgan Chase & Co.
|
| Issue: | Auto callable reverse exchangeable notes
|
| Underlying stock: | Apple Inc. (Nasdaq: AAPL)
|
| Amount: | $1,578,000
|
| Maturity: | June 26, 2008
|
| Coupon: | 21.1%, payable monthly
|
| Price: | Par
|
| Call: | If the stock closes above its initial share price on March 24, 2008, the notes will be called and investors will receive par plus accrued interest
|
| Payout at maturity: | Par plus accrued interest unless the stock falls by more than 30% during the life of the notes, in which case the payout will be a number of Apple shares equal to $1,000 divided by the initial share price or, at JPMorgan's election, the cash equivalent
|
| Initial price: | $193.91
|
| Protection amount: | $58.173, or 30% of initial price
|
| Pricing date: | Dec. 21
|
| Settlement date: | Dec. 27
|
| Agent: | J.P. Morgan Securities Inc.
|
| Fees: | 2.937%, including 2.679% for selling concessions
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