Published on 5/29/2008 in the Prospect News Structured Products Daily.
New Issue: JPMorgan prices $703,000 10% reverse exchangeables linked to Alcoa
By Angela McDaniels
Tacoma, Wash., May 29 - JPMorgan Chase & Co. priced $703,000 of 10% reverse exchangeable notes due May 29, 2009 linked to the common stock of Alcoa Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
The payout at maturity will be par unless Alcoa 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 Alcoa shares equal to $1,000 divided by the initial share price or, at JPMorgan's option, the equivalent cash value.
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: | Alcoa Inc. (Symbol: AA)
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Amount: | $703,000
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Maturity: | May 29, 2009
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Coupon: | 10%, payable monthly
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Price: | Par
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Payout at maturity: | If Alcoa stock declines by more than protection amount during life of notes and final share price is less than initial share price, 24.7647 Alcoa shares or equivalent cash value; otherwise, par
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Initial share price: | $40.38
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Protection amount: | $12.114, 30% of initial share price
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Pricing date: | May 27
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Settlement date: | May 30
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Agent: | J.P. Morgan Securities Inc.
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Fees: | 5.941%, including 3.938% for selling concessions
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