By Angela McDaniels
Tacoma, Wash., April 29 - JPMorgan Chase & Co. priced $45,000 of upside auto callable reverse exchangeable notes due Oct. 31, 2008 linked to the common stock of Google Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The six-month notes will pay 6.375% for an annualized coupon of 12.75%. Interest is payable monthly.
The payout at maturity will be par unless Google stock falls by more than 20% during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Google 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 Google shares on July 28, 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: | Google Inc. (Symbol: GOOG)
|
| Amount: | $45,000
|
| Maturity: | Oct. 31, 2008
|
| Coupon: | 12.75%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | If Google 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, 1.83803 Google shares or the equivalent value in cash; otherwise, par
|
| Call: | Automatically at par if Google shares close above the initial share price on July 28, 2008
|
| Initial share price: | $544.06
|
| Protection amount: | $108.80, 20% of initial share price
|
| Pricing date: | April 25
|
| Settlement date: | April 30
|
| Agent: | J.P. Morgan Securities Inc.
|
| Fees: | 3.37%, including 2.435% for selling concessions
|
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