Published on 5/13/2010 in the Prospect News Structured Products Daily.
New Issue: JPMorgan sells $3.4 million 8.5% upside auto callable reverse exchangeables on Schlumberger
By Angela McDaniels
Tacoma, Wash., May 13 - JPMorgan Chase & Co. priced $3.4 million of 8.5% upside auto callable single observation reverse exchangeable notes due May 13, 2011 linked to the common stock of Schlumberger NV (Schlumberger Ltd.), according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
The notes will be automatically called at par if Schlumberger stock closes above the initial share price on Aug. 11, 2010, Nov. 9, 2010, Feb. 9, 2011 or May 10, 2011.
If the notes are not called, the payout at maturity will be par unless the final price of Schlumberger stock is less than 70% of the initial share price, in which case the payout will be a number of Schlumberger 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: | Upside auto callable single observation reverse exchangeable notes
|
| Underlying stock: | Schlumberger NV (Schlumberger Ltd.) (NYSE: SLB)
|
| Amount: | $3.4 million
|
| Maturity: | May 13, 2011
|
| Coupon: | 8.5%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | If final price of Schlumberger stock has declined from initial price by more than protection amount, 14.9611 Schlumberger shares or equivalent in cash; otherwise, par
|
| Call: | Automatically at par if Schlumberger stock closes above initial share price on Aug. 11, 2010, Nov. 9, 2010, Feb. 9, 2011 or May 10, 2011
|
| Initial share price: | $66.84
|
| Protection amount: | $20.052, 30% of initial price
|
| Pricing date: | May 11
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| Settlement date: | May 14
|
| Agent: | J.P. Morgan Securities Inc.
|
| Fees: | 3.922%, including 3.25% for selling concessions
|
| Cusip: | 48124AQE0
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