JPMorgan plans contingent interest autocallables on Freeport-McMoRan

By Toni Weeks

San Diego, Aug. 28 - JPMorgan Chase & Co. plans to price autocallable contingent interest notes due Sept. 18, 2013 linked to the common stock of Freeport-McMoRan Copper & Gold Inc., according to an FWP filing with the Securities and Exchange Commission.

If Freeport-McMoRan stock closes at or above the trigger level, 70% of the initial share price, on a quarterly review date, the notes will pay a 4.5% coupon that quarter, which is equivalent to 18% per year. If Freeport-McMoRan shares close below the trigger level, no coupon will be paid that quarter.

If Freeport-McMoRan shares close at or above the initial share price on any of the review dates other than the final review date, the notes will be automatically called at par plus 4.5%.

If the notes have not been called and the final stock price is greater than or equal to the trigger level, the payout at maturity will be par plus 4.5%. If the final stock price is less than the trigger level, investors will be exposed to the decline of Freeport-McMoRan shares from the initial share price.

The notes (Cusip: 48125V4N7) are expected to price Aug. 31 and settle Sept. 6.

J.P. Morgan Securities LLC is the agent.

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