New Issue: JPMorgan prices $2 million 12.5% reverse exchangeables linked to Champion Enterprises

By Laura Lutz

Des Moines, June 11 - JPMorgan Chase & Co. priced a $2 million issue of 12.5% reverse exchangeable notes due June 13, 2008 linked to Champion Enterprises, Inc. common stock, according to a 424B2 filing with the Securities and Exchange Commission.

Interest will be paid monthly.

If Champion Enterprises stock falls below 60% of the initial share price during the life of the notes and finishes below the initial share price, the payout will be a number of Champion Enterprises shares equal to $1,000 divided by the initial share price. Otherwise, the payout will be par.

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

Issuer:	JPMorgan Chase & Co.
Issue:	Reverse exchangeable notes
Underlying stock:	Champion Enterprises, Inc.
Amount:	$2 million
Maturity:	June 13, 2008
Coupon:	12.5%, payable monthly
Price:	Par
Payout at maturity:	Par unless Champion Enterprises stock falls below $6.14 during the life of the notes and finishes below the initial share price, in which case payout will be 97.65625 Champion Enterprises shares
Initial share price:	$10.24
Protection level:	$6.14, 60% of the initial share price
Pricing date:	June 7
Settlement date:	June 13
Agent:	J.P. Morgan Securities Inc.
Fees:	4.5625%, including 4.35% for selling concessions

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