Published on 3/18/2008 in the Prospect News Structured Products Daily.
New Issue: JPMorgan prices $1.32 million auto callable 11% reverse exchangeables tied to Baker Hughes
By Angela McDaniels
Tacoma, Wash., March 18 - JPMorgan Chase & Co. priced $1.32 million of 11% upside auto callable reverse exchangeable notes due March 19, 2009 linked to the common stock of Baker Hughes Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
If the closing price of Baker Hughes stock is greater than the initial share price on a call date, the notes will be called at par plus accrued interest. The call dates are June 16, 2008, Sept. 16, 2008 and Dec. 16, 2008.
The payout at maturity will be par unless Baker Hughes stock falls by more than 35% during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Baker Hughes shares equal to par divided by the initial share price or, at JPMorgan's option, the equivalent amount in cash.
J.P. Morgan Securities Inc. is the agent.
| Issuer: | JPMorgan Chase & Co.
|
| Issue: | Upside auto callable reverse exchangeable notes
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| Underlying stock: | Baker Hughes Inc. (NYSE: BHI)
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| Amount: | $1.32 million
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| Maturity: | March 19, 2009
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| Coupon: | 11%, payable monthly
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| Price: | Par
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| Payout at maturity: | If Baker Hughes 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, 14.7427 Baker Hughes shares or the cash equivalent; otherwise, par
|
| Call: | At par plus accrued interest if Baker Hughes stock is above the initial price on June 16, 2008, Sept. 16, 2008 or Dec. 16, 2008
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| Initial share price: | $67.83
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| Protection amount: | $23.7405, 35% of initial share price
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| Pricing date: | March 14
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| Settlement date: | March 19
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| Agent: | J.P. Morgan Securities Inc.
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| Fees: | 3.227%, including 2.5% for selling concessions
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