Published on 5/29/2008 in the Prospect News Structured Products Daily.
New Issue: JPMorgan prices $4.28 million 19% reverse exchangeables linked to Monsanto
By Angela McDaniels
Tacoma, Wash., May 29 - JPMorgan Chase & Co. priced $4.28 million of reverse exchangeable notes due Aug. 29, 2008 linked to the common stock of Monsanto Co., according to a 424B2 filing with the Securities and Exchange Commission.
The three-month notes will pay 4.75% for an annualized coupon of 19%. Interest is payable monthly.
The payout at maturity will be par unless Monsanto stock falls by more than 25% during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Monsanto 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.
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Issue: | Reverse exchangeable notes
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Underlying stock: | Monsanto Co. (Symbol: MON)
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Amount: | $4.28 million
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Maturity: | Aug. 29, 2008
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Coupon: | 19%, payable monthly
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Price: | Par
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Payout at maturity: | If Monsanto 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, 8.3984 Monsanto shares or the equivalent cash amount; otherwise, par
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Initial share price: | $119.07
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Protection amount: | $29.7675, 25% of initial share price
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Pricing date: | May 27
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Settlement date: | May 30
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Agent: | J.P. Morgan Securities Inc.
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Fees: | 2.649%, including 1.808% for selling concessions
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