New Issue: JPMorgan prices $288,000 18% notes linked to Level 3

By E. Janene Geiss

Philadelphia, Feb. 27 - JPMorgan Chase & Co. priced a $288,000 offering of 18% equivalent reverse exchangeable notes due May 31, 2007 linked to the common stock of Level 3 Communications, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay 4.5% interest during the three-month term.

The payout at maturity will be par unless Level 3 stock falls by more than 20% during the life of the notes and finishes below the initial share price of $6.55, in which case the payout will be a number of Level 3 shares equal to $1,000 divided by the initial share price.

J.P. Morgan Securities Inc. is the agent.

Issuer:	JPMorgan Chase & Co.
Issue:	Reverse exchangeable notes
Underlying stock:	Level 3 Communications, Inc.
Amount:	$288,000
Maturity:	May 31, 2007
Coupon:	18% equivalent (4.5% interest during the three-month term)
Price:	Par
Payout at maturity:	Par unless Level 3 stock falls by more than 20% during the life of the notes and finishes below the initial share price, in which case payout will be 152.67 Level 3 shares
Initial share price:	$6.55
Protection amount:	$1.31, 20% of the initial price
Pricing date:	Feb. 23
Settlement date:	Feb. 28
Agent:	J.P. Morgan Securities Inc.
Agent fees:	3.1%, including 2.175% for selling commissions

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