New Issue: JPMorgan Chase sells $311,000 12% notes linked to Peabody Energy

By E. Janene Geiss

Philadelphia, April 26 - JPMorgan Chase & Co. priced a $311,000 issue of reverse exchangeable notes due Oct. 26, 2007 linked to the common stock of Peabody Energy Corp., according to a 424B2 filing with the Securities and Exchange Commission.

The six-month notes will pay 6% for an annualized rate of 12%. Interest will be payable at maturity.

The payout at maturity, in addition to interest, will be par unless Peabody Energy stock falls by more 20% during the life of the notes and finishes below the initial share price of $48.65, in which case the payout will be a number Peabody Energy 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.
Issue:	Reverse exchangeable notes
Underlying stock:	Peabody Energy Corp.
Amount:	$311,000
Maturity:	Oct. 26, 2007
Coupon:	12%, payable at maturity
Price:	Par
Payout at maturity:	If Peabody Energy stock falls by more than 20% during the life of the notes and finishes below the initial share price, 20.555 Peabody Energy shares or, at JPMorgan's option, the equivalent cash value; otherwise, par
Initial share price:	$48.65
Pricing date:	April 24
Settlement date:	April 27
Agent:	J.P. Morgan Securities Inc.
Agent fees:	2.94%, including 2.22% in selling concessions

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