Published on 9/11/2008 in the Prospect News Structured Products Daily.
New Issue: JPMorgan prices $1.13 million 20.25% reverse exchangeables linked to Bank of America
By Angela McDaniels
Tacoma, Wash., Sept. 11 - JPMorgan Chase & Co. priced $1.13 million of reverse exchangeable notes due Dec. 12, 2008 linked to the common stock of Bank of America Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The three-month notes will pay 5.0625% for an annualized coupon of 20.25%. Interest is payable monthly.
The payout at maturity will be par unless Bank of America stock falls by more than 30% during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Bank of America shares equal to $1,000 divided by the initial share price or, at JPMorgan's option, the value of those shares in cash.
J.P. Morgan Securities Inc. is the agent.
Issuer: | JPMorgan Chase & Co.
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Issue: | Reverse exchangeable notes
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Underlying stock: | Bank of America Corp. (Symbol: BAC)
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Amount: | $1,128,000
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Maturity: | Dec. 12, 2008
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Coupon: | 20.25%, payable monthly
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Price: | Par
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Payout at maturity: | If Bank of America stock declines by more than the protection amount during the life of the notes and the final share price is less than the initial share price, 30.7503 Bank of America shares or the equivalent cash amount; otherwise, par
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Initial share price: | $32.52
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Protection amount: | $9.756, 30% of initial share price
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Pricing date: | Sept. 9
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Settlement date: | Sept. 12
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Agent: | J.P. Morgan Securities Inc.
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Fees: | 2.876%, including 2.063% for selling concessions
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