New Issue: JPMorgan prices $805,000 22% reverse exchangeables linked to Target

By Angela McDaniels

Tacoma, Wash., Dec. 27 - JPMorgan Chase & Co. priced $805,000 of reverse exchangeable notes due March 31, 2008 linked to the common stock of Target Corp., according to a 424B2 filing with the Securities and Exchange Commission.

The three-month notes will pay 5.5% for an annualized rate of 22%. Interest is payable monthly.

The payout at maturity will be par unless Target stock falls by more than 20% during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Target 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.
Issue:	Reverse exchangeable notes
Underlying stock:	Target Corp. (NYSE: TGT)
Amount:	$805,000
Maturity:	March 31, 2008
Coupon:	22%, payable monthly
Price:	Par
Payout at maturity:	If Target stock falls by more than the protection amount during the life of the notes and the final share price is less than the initial share price, 19.5465 Target shares or the equivalent cash value; otherwise, par
Initial share price:	$51.16
Protection amount:	$10.232, 20% of initial share price
Pricing date:	Dec. 26
Settlement date:	Dec. 31
Agent:	J.P. Morgan Securities Inc.
Fees:	2.45%, including 1.913% for selling concessions

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.