Published on 5/15/2012 in the Prospect News Structured Products Daily.
New Issue: JPMorgan prices $590,000 10% autocallable reverse exchangeables tied to Apple, Microsoft
By Angela McDaniels
Tacoma, Wash., May 15 - JPMorgan Chase & Co. priced $590,000 of 10% annualized autocallable daily observation reverse exchangeable notes due Nov. 16, 2012 linked to the lesser performing of the common stocks of Apple Inc. and Microsoft Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
The notes will be automatically called at par if the closing price of each stock is greater than or equal to its initial price on any monthly call date.
A trigger event will occur if the closing price of either stock falls by more than 25% during the life of the notes.
If the notes are not called, the payout at maturity will be par unless the final price of either stock is less than its initial price and a trigger event has occurred. In that case, the payout will be a number of shares of the lesser-performing stock equal to $1,000 divided by the initial price of that stock or, at the issuer's option, a cash amount equal to the value of those shares.
J.P. Morgan Securities LLC is the agent.
| Issuer: | JPMorgan Chase & Co.
|
| Issue: | Autocallable daily observation reverse exchangeable notes
|
| Underlying stocks: | Apple Inc. (Nasdaq: AAPL) and Microsoft Corp. (Nasdaq: MSFT)
|
| Amount: | $590,000
|
| Maturity: | Nov. 16, 2012
|
| Coupon: | 10%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | If final price of either stock is less than initial price and either stock falls by more than 25% during life of notes, number of shares of lesser-performing stock equal to $1,000 divided by initial price of that stock or, at issuer's option, cash amount equal to value of those shares; otherwise, par
|
| Call: | Automatically at par if each stock closes at or above initial share price on June 13, 2012, July 11, 2012, Aug. 13, 2012, Sept. 12, 2012 or Oct. 11, 2012
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| Initial share prices: | $566.71 for Apple and $31.16 for Microsoft
|
| Pricing date: | May 11
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| Settlement date: | May 16
|
| Agent: | J.P. Morgan Securities LLC
|
| Fees: | 4.036%, including 2.7678% for selling concessions
|
| Cusip: | 48125VXZ8
|
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