By Laura Lutz
Des Moines, Jan. 30 - JPMorgan Chase & Co. priced a $426,000 issue of 15.1% upside auto callable reverse exchangeable notes due July 31, 2008 linked to the common stock of American International Group, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable monthly.
If the price of AIG stock is greater than the initial price on April 28, 2008, the notes will be called at par plus accrued interest.
If AIG stock falls below the knock-in price - 80% of the initial value - during the life of the notes and finishes below its initial price, the payout at maturity will be a number of AIG shares equal to par divided by the initial price.
Otherwise, the payout at maturity will be par.
J.P. Morgan Securities Inc. is the agent.
| Issuer: | JPMorgan Chase & Co.
|
| Issue: | Upside auto callable reverse exchangeable notes
|
| Underlying stock: | American International Group, Inc. (Symbol: AIG)
|
| Amount: | $426,000
|
| Maturity: | July 31, 2008
|
| Coupon: | 15.1%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | If AIG stock falls below protection price during life of notes and finishes below initial price, a number of shares equal to par divided by the initial price; otherwise, par
|
| Call: | At par plus accrued interest if AIG stock is above initial price on April 28, 2008
|
| Initial price: | $54.75
|
| Protection price: | 80% of initial price
|
| Pricing date: | Jan. 28
|
| Settlement date: | Jan. 31
|
| Agent: | J.P. Morgan Securities Inc.
|
| Fees: | 4.82%, including 2.625% for selling concessions
|
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