By Toni Weeks
San Diego, July 10 - JPMorgan Chase & Co. priced $5.95 million of autocallable contingent interest notes due July 24, 2013 linked to the common stock of General Electric Co., according to a 424B2 filing with the Securities and Exchange Commission.
If GE shares close at or above the trigger level, 75% of the initial share price, on a quarterly review date, the notes will pay a 2.93% coupon that quarter, which is equivalent to 11.72% per year. If GE shares close below the trigger level, no coupon will be paid that quarter.
If GE 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 2.93%.
If the notes have not been called and the final share price is greater than or equal to the trigger level, the payout at maturity will be par plus 2.93%. If the final share price is less than the trigger level, investors will be fully exposed to the decline of GE shares from the initial share price.
J.P. Morgan Securities LLC is the agent.
| Issuer: | JPMorgan Chase & Co.
|
| Issue: | Autocallable contingent interest notes
|
| Underlying stock: | General Electric Co. (NYSE: GE)
|
| Amount: | $5.95 million
|
| Maturity: | July 24, 2013
|
| Coupon: | If GE shares close at or above trigger level on review date, 2.93% coupon will be paid that quarter (equivalent to 11.72% per year); if GE shares close below trigger level, no coupon will be paid that quarter
|
| Price: | Par
|
| Payout at maturity: | If final share price is greater than or equal to trigger level, par plus 2.93%; otherwise, full exposure to decline of GE shares from initial share price
|
| Call: | Automatically at par plus 2.93% if GE shares close at or above initial share price on Oct. 18, Jan. 17, 2013, April 18, 2013 or July 19, 2013
|
| Initial share price: | $20.00
|
| Trigger level: | $15.00, 75% of initial share price
|
| Pricing date: | July 6
|
| Settlement date: | July 11
|
| Agent: | J.P. Morgan Securities LLC
|
| Fees: | 1%
|
| Cusip: | 48125VR28
|
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