By Angela McDaniels
Tacoma, Wash., May 29 - JPMorgan Chase & Co. priced $453,000 of upside auto callable reverse exchangeable notes due Dec. 1, 2008 linked to the common stock of General Motors Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The six-month notes will pay 10% for an annualized coupon of 20%. Interest is payable monthly.
The payout at maturity will be par unless GM stock falls by more than 40% during the life of the notes and finishes below the initial share price, in which case the payout will be a number of GM shares equal to $1,000 divided by the initial share price or, at JPMorgan's option, the equivalent value in cash.
The notes will be automatically called at par if the closing price of GM shares on Aug. 26, 2008 is greater than the initial share price.
J.P. Morgan Securities Inc. is the agent.
| Issuer: | JPMorgan Chase & Co.
|
| Issue: | Upside auto callable reverse exchangeable notes
|
| Underlying stock: | General Motors Corp. (Symbol: GM)
|
| Amount: | $453,000
|
| Maturity: | Dec. 1, 2008
|
| Coupon: | 20%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | If GM stock falls by more than the protection amount during the life of the notes and the final share price is less than the initial share price, 57.4053 GM shares or the equivalent value in cash; otherwise, par
|
| Call: | Automatically at par if GM shares close above the initial share price on Aug. 26, 2008
|
| Initial share price: | $17.42
|
| Protection amount: | $6.968, 40% of initial share price
|
| Pricing date: | May 27
|
| Settlement date: | May 30
|
| Agent: | J.P. Morgan Securities Inc.
|
| Fees: | 5.82%, including 3.66% for selling concessions
|
© 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.
