Published on 3/16/2009 in the Prospect News Structured Products Daily.
New Issue: JPMorgan sells $7.1 million quarterly review notes linked to S&P 500
By Jennifer Chiou
New York, March 16 - JPMorgan Chase & Co. priced $7.1 million of 0% quarterly review notes due March 31, 2010 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be automatically called at increasing premiums if the index closes at or above its call level of 80% of the initial level on the first review date, 85% of the initial level on the second review date, 90% of the initial level on the third review date and 95% of the initial level on the final review date.
The redemption amount will be par plus 3.15% if the notes are called on June 12, 2009, par plus 6.3% if called on Sept. 14, 2009, par plus 9.45% if called on Dec. 14, 2009 and par plus 12.6% if called on March 26, 2010.
If the notes are not called, investors will receive par at maturity unless the index falls by more than 10%. Investors will lose 1.1111% for every 1% drop beyond 10%.
J.P. Morgan Securities Inc. is agent.
| Issuer: | JPMorgan Chase & Co.
|
| Issue: | Quarterly review notes
|
| Underlying index: S&P 500
|
| Amount: | $7,102,000
|
| Maturity: | March 31, 2010
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par unless the index falls by more than 10%; loss of 1.1111% for every 1% decline beyond 10%
|
| Call: | If index closes at or above 80% of the initial level on the first review date, 85% of the initial level on the second review date, 90% of the initial level on the third review date and 95% of the initial level on the final review date; at par plus 3.15% if notes are called on June 12, 2009, par plus 6.3% if called on Sept. 14, 2009, par plus 9.45% if called on Dec. 14, 2009 and par plus 12.6% if called on March 26, 2010
|
| Initial index level: 750.74
|
| Pricing date: | March 12
|
| Settlement date: | March 17
|
| Agent: | J.P. Morgan Securities Inc.
|
| Fees: | 1.5%, including 0.75% for selling concessions
|
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