Published on 9/7/2007 in the Prospect News Structured Products Daily.
New Issue: JPMorgan prices $600,000 20.018% reverse exchangeables linked to Elan
By Jennifer Chiou
New York, Sept. 7 - JPMorgan Chase & Co. priced a $600,000 issue of 20.018% annualized reverse exchangeable notes due Dec. 28, 2007 linked to American Depositary Shares representing Elan Corp., plc stock, according to a 424B2 filing with the Securities and Exchange Commission.
If Elan ADSs fall by 35% or more of the initial price during the life of the notes and finish below the initial price, the payout will be a number of Elan ADSs equal to $1,000 divided by the initial price.
If the ADSs decline by more than the protection amount, investors will share in any losses.
Interest will be payable monthly.
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: | Elan Corp., plc (NYSE: ELN)
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Amount: | $600,000
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Maturity: | Dec. 28, 2007
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Coupon: | 20.018% annualized, payable monthly
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Price: | Par
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Payout at maturity: | Par unless Elan ADSs fall by $7.13 or more during the life of the notes and finishes below the initial share price, in which case payout will be a number of ADSs equal to $1,000 divided by the initial price
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Initial share price: | $20.37
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Protection amount: | $7.13, 35% of the initial share price
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Pricing date: | Sept. 6
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Settlement date: | Sept. 11
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Agent: | J.P. Morgan Securities Inc.
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Fees: | 3.1%, including 1.65% for selling concessions
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