New Issue: JPMorgan prices $1.5 million 9.75% reverse exchangeables linked to Starbucks

By Laura Lutz

Des Moines, May 16 - JPMorgan Chase & Co. priced a $1.5 million issue of 9.75% reverse exchangeable notes due May 19, 2008 linked to Starbucks Corp. stock, according to a 424B2 filing with the Securities and Exchange Commission.

Interest will be paid monthly.

If Starbucks stock falls below 80% of the initial share price during the life of the notes and finishes below the initial share price, the payout will be a number of Starbucks shares equal to $1,000 divided by the initial share price. Otherwise, the payout will be par.

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

Issuer:	JPMorgan Chase & Co.
Issue:	Reverse exchangeable notes
Underlying stock:	Starbucks Corp.
Amount:	$1.5 million
Maturity:	May 19, 2008
Coupon:	9.75%, payable monthly
Price:	Par
Payout at maturity:	Par unless Starbucks stock falls below $22.71 during the life of the notes and finishes below the initial share price, in which case payout will be 35.2237 Starbucks shares
Initial share price:	$28.39
Trigger price:	$22.71, 80% of the initial share price
Pricing date:	May 15
Settlement date:	May 18
Agent:	J.P. Morgan Securities Inc.
Fees:	2.45%, including 1.75% for selling concessions

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