Published on 4/1/2008 in the Prospect News Structured Products Daily.
New Issue: JPMorgan prices $1.09 million 18.9% reverse exchangeables linked to Arch Coal
By Susanna Moon
Chicago, April 1 - JPMorgan Chase & Co. priced $1.09 million of 18.9% annualized reverse exchangeable notes due Oct. 3, 2008 linked to the common stock of Arch Coal, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
The payout at maturity will be par unless Arch Coal stock falls by more than 35% during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Arch Coal shares equal to $1,000 divided by the initial share price or, at JPMorgan's option, the equivalent cash value.
J.P. Morgan Securities Inc. is the agent.
Issuer: | JPMorgan Chase & Co.
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Issue: | Reverse exchangeable notes
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Underlying stock: | Arch Coal, Inc. (NYSE: ACI)
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Amount: | $1.09 million
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Maturity: | Oct. 3, 2008
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Coupon: | 18.9%, payable monthly
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Price: | Par
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Payout at maturity: | If Arch Coal stock falls by more than the protection amount during the life of the notes and the final share price is less than the initial share price, 22.9885 Arch Coal shares or equivalent cash value; otherwise, par
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Initial share price: | $43.50
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Protection amount: | $15.225, or 35% of initial price
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Pricing date: | March 31
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Settlement date: | April 3
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Agent: | J.P. Morgan Securities Inc.
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Fees: | 2.3%, including 1.8% for selling concessions
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