New Issue: JPMorgan Chase & Co. sells $557,000 of 10.5% reverse convertibles linked to Transocean

By Laura Lutz

Des Moines, Sept. 19 - JPMorgan Chase & Co. priced $557,000 of 10.5% reverse convertible notes due Sept. 28, 2007 linked to Transocean Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.

Payout at maturity will be par in cash if Transocean stock does not decline by more than the protection amount, 30% of the initial price of $69.96, between Sept. 22, 2006 and Sept. 25, 2007, and finishes at or above the initial price. Otherwise, the payout will be in Transocean 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:	Transocean Inc.
Amount:	$557,000
Maturity:	Sept. 28, 2007
Coupon:	10.5%, payable monthly
Price:	Par
Payout at maturity:	Par in cash if Transocean stock does not decline by more than the protection amount of $20.988 and finishes at or above the initial price; otherwise shares of Transocean stock equal to $1,000 divided by the initial price
Initial price:	$69.96
Protection amount:	$20.988, 30% of initial price
Pricing date:	Sept. 22
Settlement date:	Sept. 25
Agent:	J. P. Morgan Securities Inc.

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