Published on 4/29/2008 in the Prospect News Structured Products Daily.
New Issue: JPMorgan prices $283,000 16% reverse exchangeables linked to four financial stocks
By Angela McDaniels
Tacoma, Wash., April 29 - JPMorgan Chase & Co. priced $283,000 of reverse exchangeable notes due July 31, 2008 linked to the common stocks of Bank of America Corp., Citigroup Inc., Goldman Sachs Group, Inc. and Merrill Lynch & Co., Inc., according to 424B2 filing with the Securities and Exchange Commission.
The three-month notes will pay 4% for an annualized coupon of 16%. Interest is payable monthly.
The payout at maturity will be par unless any reference stock falls by more than 40% during the life of the notes. In that case, the payout will be a number of shares of the worst-performing stock equal to $1,000 divided by the initial share price of that stock or, at JPMorgan's option, the equivalent cash value.
If the cash value of the physical delivery amount is greater than $1,000, investors will receive par in cash instead of shares.
J.P. Morgan Securities Inc. is the agent.
| Issuer: | JPMorgan Chase & Co.
|
| Issue: | Reverse exchangeable notes
|
| Underlying stocks: | Bank of America Corp. (NYSE: BAC), Citigroup Inc. (NYSE: C), Goldman Sachs Group, Inc. (NYSE: GS) and Merrill Lynch & Co., Inc. (NYSE: MER)
|
| Amount: | $283,000
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| Maturity: | July 31, 2008
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| Coupon: | 16%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | If any stock falls by more than its protection amount during the life of the notes, a number of shares of the worst-performing stock equal to its exchange ratio or the equivalent amount in cash; otherwise, par
|
| Initial share prices: | $38.30 for Bank of America, $26.60 for Citigroup, $192.00 for Goldman Sachs, $49.64 for Merrill Lynch
|
| Protection amounts: | $15.32 for Bank of America, $10.64 for Citigroup, $76.80 for Goldman Sachs, $19.856 for Merrill Lynch; 40% of initial share price
|
| Exchange ratios: | 26.1097 for Bank of America, 37.5940 for Citigroup, 5.2083 for Goldman Sachs, 20.145 for Merrill Lynch
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| Pricing date: | April 25
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| Settlement date: | April 30
|
| Agent: | J.P. Morgan Securities Inc
|
| Fees: | 1.35%, including 1.3% for selling concessions
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