JPMorgan plans autocallable contingent interest notes tied to Starbucks

By Angela McDaniels

Tacoma, Wash., June 26 - JPMorgan Chase & Co. plans to price autocallable contingent interest notes due July 17, 2013 linked to the common stock of Starbucks Corp., according to an FWP filing with the Securities and Exchange Commission.

If Starbucks shares close at or above the trigger level, 75% of the initial share price, on a quarterly review date, the notes will pay a 3.6125% coupon that quarter, which is equivalent to 14.45% per year. If Starbucks shares close below the trigger level, no coupon will be paid that quarter.

If Starbucks shares close at or above the initial share price on any of the review dates other than the final review date, the notes will be automatically called at par plus 3.6125%.

If the notes have not been called and the final share price is greater than or equal to the trigger level, the payout at maturity will be par plus 3.6125%. If the final share price is less than the trigger level, investors will be exposed to the decline of Starbucks shares from the initial share price.

The notes are expected to price June 29 and settle July 5.

J.P. Morgan Securities LLC is the agent.

The Cusip number is 48125VM98.

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