New Issue: JPMorgan prices $1 million 11.4% reverse convertibles linked to UPS

By Angela McDaniels

Tacoma, Wash., June 29 – JPMorgan Chase & Co. priced $1 million of 11.4% reverse exchangeable notes due June 30, 2010 linked to the class B common stock of United Parcel Service, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

The payout at maturity will be par in cash unless UPS shares fall by more than 20% during the life of the notes and finish below the initial price, in which case the payout will be a number of UPS class B shares equal to $1,000 divided by the initial share price.

J.P. Morgan Securities Inc. is the agent.

Issuer:	JPMorgan Chase & Co.
Issue:	Reverse exchangeable notes
Underlying stock:	Class B common stock of United Parcel Service, Inc. (NYSE: UPS)
Amount:	$1 million
Maturity:	June 30, 2010
Coupon:	11.4%, payable monthly
Price:	Par
Payout at maturity:	Par in cash unless UPS shares fall by more than the protection amount during the life of the notes and finish below the initial price, in which case 20.2552 UPS shares
Initial share price:	$49.37
Protection amount:	$9.874, 20% of initial price
Pricing date:	June 25
Settlement date:	June 30
Agent:	J.P. Morgan Securities Inc.
Fees:	3.85%, including 3.3% for selling concessions

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