Published on 11/29/2007 in the Prospect News Structured Products Daily.
New Issue: JPMorgan prices $50,000 13% reverse exchangeables linked to Oracle
By E. Janene Geiss
Philadelphia, Nov. 29 - JPMorgan Chase & Co. priced $50,000 of reverse exchangeable notes due May 30, 2008 linked to the common stock of Oracle Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The six-month notes will pay 6.5% for an annualized rate of 13%. Interest is payable monthly.
The payout at maturity will be par unless Oracle stock falls by more than 25% during the life of the notes and the final share price is less than the initial share price, in which case the payout will be a number of Oracle shares equal to $1,000 divided by the initial share price or, at JPMorgan's option, the equivalent cash value.
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: | Oracle Corp. (Symbol: ORCL)
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Amount: | $50,000
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Maturity: | May 30, 2008
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Coupon: | 13%, payable monthly
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Price: | Par
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Payout at maturity: | If Oracle stock falls by more than the protection amount during the life of the notes and finishes below the initial share price, 50.2765 Oracle shares or equivalent cash value; otherwise, par
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Initial share price: | $19.89
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Protection amount: | $14.9175, or 75% of initial share price
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Pricing date: | Nov. 27
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Settlement date: | Nov. 30
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Agent: | J.P. Morgan Securities Inc.
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Fees: | 3.4%, including 2.45% for selling concessions
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