New Issue: JPMorgan prices $142.77 million add-on to Alerian MLP index-linked ETNs

By Toni Weeks

San Diego, Nov. 17 - JPMorgan Chase & Co. priced an additional $142.77 million add-on to its exchange-traded notes due May 24, 2024 linked to the volume-weighted average price level of the Alerian MLP index, according to a 424B2 filing with the Securities and Exchange Commission.

The additional notes bring the total issue size to $1.81 billion. The original $75 million of notes priced on April 1, 2009.

The index measures the composite performance of energy-oriented master limited partnerships.

Each note has a face value of $19.03661, which is equal to the initial volume-weighted average price level of the index divided by 10.

On each quarterly coupon payment date, the notes will pay an amount in cash equal to the distributions that holders would be entitled to receive on the record date for any index component less the accrued tracking fee. The tracking fee is an amount per note equal to 0.2125% (equivalent to 0.85% per year) times the current indicative value on the previous day. On each day, the current indicative value equals the index's volume weighted average price level on that date divided by the initial level.

If the index payout is less than the tracking fee on any coupon date, no coupon will be paid on that date, and an amount equal to the difference between the tracking fee and the index payout will be included in the tracking fee for the next coupon. This process will be repeated until the index payout for a coupon valuation date is greater than the tracking fee.

The payout at maturity will be par plus the index return plus the final coupon amount minus the tracking fee.

The notes are putable on the last business day of each week, subject to a 0.125% fee. The redemption amount will be calculated in the same way as the payout at maturity.

The notes are listed on the NYSE Arca under the symbol "AMJ."

J.P. Morgan Securities LLC is the agent.

Issuer:	JPMorgan Chase & Co.
Issue:	Exchange-traded notes
Underlying index:	Alerian MLP
Amount:	$1,808,477,950, increased from original $74,999,998
Maturity:	May 24, 2024
Coupon:	An amount equal to the difference between the payouts on the index components and the accrued tracking fee; payable quarterly
Price:	Variable
Payout at maturity	Par plus the index return plus the final coupon amount minus the tracking fee
Put option:	On last business day of each week, subject to 0.125% fee; payout calculated in same way as at maturity
Initial VWAP level:	190.36605
Pricing dates:	April 1, 2009 for $74,999,998; June 5, 2009 for $74,999,998; Aug. 13, 2009 for $84,999,987; Sept. 24, 2009 for $98,140,692; Dec. 9, 2009 for $142,774,575; Feb. 19, 2010 for $142,774,575; April 19 for $142,774,575; July 12 for $142,774,575; Oct. 11 for $142,774,575, Nov. 23 for $142,774,575; Feb. 16 for $95,183,050; April 1 for $95,183,050; July 15 for $142,774,575; Sept. 20 for $142,774,575; Nov. 15 for $142,774,575
Settlement dates:	April 6, 2009 for original issue; June 10, 2009 for add-on; Aug. 18, 2009 for second add-on; Sept. 29, 2009 for third add-on; Dec. 14, 2009 for fourth add-on; Feb. 24, 2010 for fifth add-on; April 22 for sixth add-on; July 16 for seventh add-on; Oct. 14 for eighth add-on, Nov. 29 for ninth add-on; Feb. 22 for 10th add-on; April 6 for 11th add-on; July 20 for 12th add-on; Sept. 22 for 13th add-on; Nov. 18 for 14th add-on
Agent:	J.P. Morgan Securities LLC
Fees:	Agent will receive tracking fees
Listing:	NYSE Arca: AMJ
Cusip:	46625H365

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.