By Jennifer Chiou
New York, April 27 - JPMorgan Chase & Co. priced a $2.083 million issue of reverse exchangeable notes due Oct. 30, 2007 linked to General Motors Corp. stock, according to a 424B2 filing with the Securities and Exchange Commission.
The six-month notes will pay 9% for an annualized rate of 18%. Interest will be payable monthly.
If General Motors stock falls by more than 25% 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 General Motors shares equal to $1,000 divided by the initial share price.
J.P. Morgan Securities Inc. is the agent.
| Issuer: | JPMorgan Chase & Co.
|
| Issue: | Reverse exchangeable notes
|
| Underlying stock: | General Motors Corp.
|
| Amount: | $2.083 million
|
| Maturity: | Oct. 30, 2007
|
| Coupon: | 9% (18% annualized), payable monthly
|
| Price: | Par
|
| Payout at maturity: | Par unless General Motors stock falls by more than $8.11 during the life of the notes and finishes below the initial share price, in which case payout will be 30.8166 General Motors shares
|
| Initial share price: | $32.45
|
| Protection amount: | $8.11, 25% of the initial share price
|
| Pricing date: | April 25
|
| Settlement date: | April 30
|
| Agent: | J.P. Morgan Securities Inc.
|
| Fees: | 3%, including 2% for selling concessions
|
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