Published on 1/31/2012 in the Prospect News Structured Products Daily.
New Issue: JPMorgan prices $1.81 million 16% reverse exchangeables tied to Bank of America
By Susanna Moon
Chicago, Jan. 31 - JPMorgan Chase & Co. priced $1.81 million of 16% annualized reverse exchangeable notes due April 30, 2012 linked to Bank of America Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
The payout at maturity will be par unless Bank of America stock closes below the 75% trigger level during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Bank of America shares equal to $1,000 divided by the initial share price or, at the issuer's option, the cash equivalent.
J.P. Morgan Securities LLC is the agent.
Issuer: | JPMorgan Chase & Co.
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Issue: | Reverse exchangeable notes
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Underlying stock: | Bank of America Corp. (Symbol: BAC)
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Amount: | $1,806,000
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Maturity: | April 30, 2012
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Coupon: | 16%, payable monthly
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Price: | Par
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Payout at maturity: | If stock ever falls by more than protection amount and the final share price is less than initial share price, 137.1742 Bank of America shares or cash equivalent; otherwise, par
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Initial share price: | $7.29
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Exchange ratio: | 137.1742
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Protection amount: | $1.8225, or 25% of initial share price
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Pricing date: | Jan. 27
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Settlement date: | Jan. 31
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Agent: | J.P. Morgan Securities LLC
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Fees: | 1.834%, including 1.512% for selling concessions
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Cusip: | 48125VKH2
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