JPMorgan to price trigger notes linked to S&P 500

By Jennifer Chiou

New York, Jan. 5 - JPMorgan Chase & Co. is planning an issue of semiannual review notes due Feb. 5, 2009 linked to the S&P 500 index, according to 424B2 filing with the Securities and Exchange Commission.

The notes are expected to price on Jan. 12 and settle on Jan. 18.

The notes have an automatic call feature that triggers mandatory redemption if the index closes above its initial level on any of four review dates, the first of which is Aug. 1, 2007.

If the notes are called on Aug. 1, 2007, investors will receive a return of at least 12%.

If the notes are called on the second review date of Feb. 1, 2008, investors will receive a return of at least 16%.

If the notes are called on the third review date of Aug. 1, 2008, investors will receive a return of at least 20%.

If the notes are called on the final review date of Feb. 2, 2009, investors will receive a return of at least 24%.

The principal of the notes is protected up to a 10% decline in the index if the automatic call is not triggered. Investors will lose 1.1111% for every 1% decline in the index beyond 10%.

J.P. Morgan Securities Inc. is underwriter.

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