Published on 3/28/2008 in the Prospect News Structured Products Daily.
New Issue: JPMorgan prices $50,000 0% annual review notes linked to Microsoft
By Susanna Moon
Chicago, March 28 - JPMorgan Chase & Co. priced $50,000 of 0% annual review notes due March 31, 2011 linked to the common stock of Microsoft Corp., according to an FWP filing with the Securities and Exchange Commission.
The notes will be called at increasing premiums if the stock's closing price is at or above its initial share price on one of three annual review dates.
The redemption amount will be par plus 13.5% if the notes are called on April 7, 2009, par plus 27% if called on March 25, 2010 and par plus 40.5% if called on March 28, 2011.
If the notes are not called, the payout at maturity will be par unless the stock declines by more than 25% at any time during the life of the notes, in which case investors will receive a number of Microsoft shares equal to $1,000 divided by the initial share price.
J.P. Morgan Securities is the agent.
| Issuer: | JPMorgan Chase & Co.
|
| Issue: | Annual review notes
|
| Underlying stock: | Microsoft Corp. (Nasdaq: MSFT)
|
| Amount: | $50,000
|
| Maturity: | March 31, 2011
|
| Coupon: | 0%
|
| Price: | Par
|
| Call: | Notes will be called at increasing premiums if stock price is at or above the initial share price on one of three annual review dates; par plus 13.5% if called on April 7, 2009, par plus 27% if called on March 25, 2010 and par plus 40.5% if called on March 28, 2011
|
| Payout at maturity: | If stock declines by more than 25% at any time during the life of the notes, 35.0018 Microsoft shares; otherwise, par
|
| Initial share price: | $28.57
|
| Knock-out buffer: | $7.1425, 25% of initial price
|
| Pricing date: | March 26
|
| Settlement date: | March 31
|
| Agent: | J.P. Morgan Securities Inc.
|
| Fees: | 6.45%, including 3.5% for selling concessions
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