New Issue: JPMorgan prices $17.07 million 17.85% RevCons linked to Chesapeake Energy

By Jennifer Chiou

New York, Sept. 11 - JPMorgan Chase & Co. priced $17.07 million of 17.85% reverse convertible notes due March 15, 2010 linked to Chesapeake Energy Corp. shares, according to an FWP with the Securities and Exchange Commission.

Interest will be payable monthly.

The payout at maturity will be par unless the stock falls below the trigger price - 75% of the initial share price - during the life of the notes and the final share price is less than the initial price, in which case the payout will be a number of Chesapeake Energy shares equal to $1,000 divided by the initial share price or, at the issuer's option, the cash equivalent.

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

Issuer:	JPMorgan Chase & Co.
Issue:	RevCons
Underlying stock:	Chesapeake Energy Corp. (Symbol: CHK)
Amount:	$17.07 million
Maturity:	March 15, 2010
Coupon:	17.85%, payable monthly
Price:	Par
Payout at maturity:	Par in cash unless Chesapeake Energy shares fall below the protection price, 25% of the initial price, and finish below the initial price, in which case 42.2833 Chesapeake Energy shares
Initial price:	$23.65
Trigger price:	$17.7375, 75% of the initial price
Pricing date:	Sept. 9
Settlement date:	Sept. 14
Agent:	J.P. Morgan Securities Inc.
Fees:	2%, all towards selling concessions to Morgan Stanley Smith Barney LLC

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