New Issue: JPMorgan sells $1.17 million 10.35% reverse convertibles linked to Qualcomm

By Laura Lutz

Des Moines, Oct. 24 - JPMorgan Chase & Co. priced $1.174 million of 10.35% reverse exchangeable notes due Oct. 25, 2007 linked to Qualcomm Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.

Payout at maturity will be par in cash if Qualcomm stock stays at or above the protection price, 70% of the initial price of $37.92, between Oct. 20, 2006 and Oct. 22, and finishes at or above the initial price. Otherwise, the payout will be in Qualcomm stock, with the number of shares equal to $1,000 divided by the initial share price.

Issuer:	JPMorgan Chase & Co.
Issue:	Reverse convertible notes
Underlying stock:	Qualcomm Inc.
Amount:	$1.174 million
Maturity:	Oct. 25, 2007
Coupon:	10.35%, payable monthly
Price:	Par
Payout at maturity:	Par in cash if Qualcomm stock stays at or above the protection price of $26.54 and finishes at or above the initial price; otherwise shares of Qualcomm stock equal to $1,000 divided by the initial price
Initial price:	$37.92
Protection price:	$26.54, 70% of $37.92
Pricing date:	Oct. 20
Settlement date:	Oct. 25
Agent:	J.P. Morgan Securities Inc.
Agent fee:	4.45%

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