New Issue: JPMorgan prices $60,000 13.5% reverse exchangeables tied to lululemon

By Susanna Moon

Chicago, Jan. 31 - JPMorgan Chase & Co. priced $60,000 of 13.5% annualized reverse exchangeable notes due April 30, 2012 linked to lululemon athletica inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

The payout at maturity will be par unless lululemon stock closes below the 75% trigger level during the life of the notes and finishes below the initial share price, in which case the payout will be a number of lululemon shares equal to $1,000 divided by the initial share price or, at the issuer's option, the cash equivalent.

J.P. Morgan Securities LLC is the agent.

Issuer:	JPMorgan Chase & Co.
Issue:	Reverse exchangeable notes
Underlying stock:	lululemon athletica inc. (Symbol: LULU)
Amount:	$60,000
Maturity:	April 30, 2012
Coupon:	13.5%, payable monthly
Price:	Par
Payout at maturity:	If stock ever falls by more than protection amount and the final share price is less than initial share price, 15.5933 lululemon shares or cash equivalent; otherwise, par
Initial share price:	$64.13
Exchange ratio:	15.5933
Protection amount:	$16.0325, or 25% of initial share price
Pricing date:	Jan. 27
Settlement date:	Jan. 31
Agent:	J.P. Morgan Securities LLC
Fees:	2.4%, including 1.825% for selling concessions
Cusip:	48125VKJ8

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