Published on 6/30/2008 in the Prospect News Structured Products Daily.
New Issue: JPMorgan prices $575,000 18.15% reverse exchangeables linked to Merrill Lynch
By Susanna Moon
Chicago, June 30 - JPMorgan Chase & Co. priced $575,000 of 18.15% annualized reverse exchangeable notes due Dec. 31, 2008 linked to the common stock of Merrill Lynch & Co., Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
The payout at maturity will be par unless Merrill Lynch stock falls by more than 35% during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Merrill Lynch 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: | Merrill Lynch & Co., Inc. (NYSE: MER)
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Amount: | $575,000
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Maturity: | Dec. 31, 2008
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Coupon: | 18.15%, payable monthly
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Price: | Par
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Payout at maturity: | If Merrill Lynch stock falls by more than the protection amount during the life of the notes and finishes below the initial share price, 22.7687 Merrill Lynch shares or the equivalent cash value; otherwise, par
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Initial share price: | $33.05
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Protection amount: | $11.5675, or 35% of initial price
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Pricing date: | June 26
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Settlement date: | June 30
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Agent: | J.P. Morgan Securities Inc.
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Fees: | 2.9%, including 1.9% for selling concessions
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