By E. Janene Geiss
Philadelphia, April 26 - JPMorgan Chase & Co. priced a $1.025 million issue of reverse exchangeable notes due July 27, 2007 linked to the common stock of Apple Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The three-month notes will pay 2.5% for an annualized rate of 10%. Interest will be payable at maturity.
The payout at maturity, in addition to interest, will be par unless Apple stock falls by more 15% during the life of the notes and finishes below the initial share price of $93.24, in which case the payout will be a number Apple shares equal to $1,000 divided by the initial share price or, at JPMorgan's option, the equivalent cash value.
J.P. Morgan Securities Inc. is the agent.
Issuer: | JPMorgan Chase & Co.
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Issue: | Reverse exchangeable notes
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Underlying stock: | Apple Inc.
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Amount: | $1.025 million
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Maturity: | July 27, 2007
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Coupon: | 10%, payable at maturity
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Price: | Par
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Payout at maturity: | If Apple stock falls by more than 15% during the life of the notes and finishes below the initial share price, 10.725 Apple shares or, at JPMorgan's option, the equivalent cash value; otherwise par
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Initial share price: | $93.24
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Pricing date: | April 24
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Settlement date: | April 27
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Agent: | J.P. Morgan Securities Inc.
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Agent fees: | 2.697%, including 1.973% in selling commissions
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