JPMorgan plans 18% reverse exchangeables linked to Wachovia

By Angela McDaniels

Tacoma, Wash., June 26 - JPMorgan Chase & Co. plans to price reverse exchangeable notes due Jan. 9, 2009 linked to the common stock of Wachovia Corp., according to an FWP filing with the Securities and Exchange Commission.

The six-month notes will pay 9% for an annualized coupon of 18%. Interest will be payable monthly.

The payout at maturity will be par unless Wachovia stock falls by more than 40% during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Wachovia shares equal to $1,000 divided by the initial share price or, at JPMorgan's option, the value of those shares in cash.

The notes are expected to price on July 7 and settle on July 10.

J.P. Morgan Securities Inc. will be the agent.

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