New Issue: JPMorgan sells $419,000 18.25% reverse convertibles linked to XM

By Laura Lutz

Des Moines, Oct. 24 - JPMorgan Chase & Co. priced $419,000 of 18.25% reverse exchangeable notes due Oct. 25, 2007 linked to XM Satellite Radio Holdings stock, according to a 424B2 filing with the Securities and Exchange Commission.

Payout at maturity will be par in cash if XM stock stays at or above the protection price, 70% of the initial price of $11.09, between Oct. 20, 2006 and Oct. 22, 2007, and finishes at or above the initial price. Otherwise, the payout will be in XM stock, with the number of shares equal to $1,000 divided by the initial share price.

Issuer:	JP Morgan Chase & Co.
Issue:	Reverse exchangeable notes
Underlying stock:	XM Satellite Radio Holdings
Amount:	$419,000
Maturity:	Oct. 25, 2007
Coupon:	18.25%, payable monthly
Price:	Par
Payout at maturity:	Par in cash if XM stock stays at or above the protection price of $7.76 and finishes at or above the initial price; otherwise shares of XM stock equal to $1,000 divided by the initial price
Initial price:	$11.09
Protection price:	$7.76, 70% of $11.09
Pricing date:	Oct. 20
Settlement date:	Oct. 25
Agent:	J.P. Morgan Securities Inc.
Agent fee:	4.6%

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