New Issue: JPMorgan prices $174,000 13.25% reverse exchangeables linked to Kohl's

By Angela McDaniels

Tacoma, Wash., Aug. 28 - JPMorgan Chase & Co. priced $174,000 of reverse exchangeable notes due Feb. 27, 2009 linked to the common stock of Kohl's Corp., according to a 424B2 filing with the Securities and Exchange Commission.

The six-month notes will pay 6.625% for an annualized coupon of 13.25%. Interest is payable monthly.

The payout at maturity will be par unless Kohl's stock falls by more than 30% during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Kohl's shares equal to $1,000 divided by the initial share price or, at JPMorgan's option, an equivalent amount in cash.

J.P. Morgan Securities Inc. is the agent.

Issuer:	JPMorgan Chase & Co.
Issue:	Reverse exchangeable notes
Underlying stock:	Kohl's Corp. (Symbol: KSS)
Amount:	$174,000
Maturity:	Feb. 27, 2009
Coupon:	13.25%, payable monthly
Price:	Par
Payout at maturity:	If Kohl's stock declines by more than the protection amount during the life of the notes and the final share price is less than the initial share price, 20.6398 Kohl's shares or the equivalent cash amount; otherwise, par
Initial share price:	$48.45
Protection amount:	$14.535, 30% of initial share price
Pricing date:	Aug. 26
Settlement date:	Aug. 29
Agent:	J.P. Morgan Securities Inc.
Fees:	3.608%, including 2.554% 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.