Published on 6/22/2010 in the Prospect News Structured Products Daily.
New Issue: JPMorgan prices $5 million autocallable optimization notes linked to Anadarko
By Angela McDaniels
Tacoma, Wash., June 22 - JPMorgan Chase & Co. priced $5 million of 0% autocallable optimization securities with contingent protection due June 24, 2011 linked to the common stock of Anadarko Petroleum Corp., according to a 424B2 filing with the Securities and Exchange Commission.
If Anadarko's shares close at or above the initial share price of any of 12 monthly observation dates, the notes will be automatically called and investors will receive par of $10 plus an annualized call premium of 61%.
The observation dates are July 19, Aug. 18, Sept. 20, Oct. 18, Nov. 18, Dec. 20, 2010, Jan. 18, 2011, Feb. 18, 2011, March 18, 2011, April 18, 2011, May 18, 2011 and June 20, 2011.
If the notes are not called and the final share price is greater than or equal to 60% of the initial price, the payout at maturity will be par. If the final share price is less than 60% of the initial price, the payout will be par plus the stock return.
UBS Financial Services Inc. and J.P. Morgan Securities Inc. are the agents.
| Issuer: | JPMorgan Chase & Co.
|
| Issue: | Autocallable optimization securities with contingent protection
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| Underlying stock: | Anadarko Petroleum Corp. (NYSE: APC)
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| Amount: | $5 million
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| Maturity: | June 24, 2011
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| Coupon: | 0%
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| Price: | Par of $10.00
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| Payout at maturity: | Par if final share price is greater than or equal to trigger price; otherwise, par plus share price return
|
| Call: | Automatically at par plus annualized call premium of 61% if Anadarko's shares close at or above the initial price on July 19, Aug. 18, Sept. 20, Oct. 18, Nov. 18, Dec. 20, 2010, Jan. 18, 2011, Feb. 18, 2011, March 18, 2011, April 18, 2011, May 18, 2011 or June 20, 2011
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| Initial share price: | $42.57
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| Trigger price: | $25.55, 60% of initial price
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| Pricing date: | June 18
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| Settlement date: | June 23
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| Agents: | UBS Financial Services Inc. and J.P. Morgan Securities Inc.
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| Fees: | 1.25%
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| Cusip: | 46634E288
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