Published on 10/21/2010 in the Prospect News Structured Products Daily.
New Issue: JPM prices $300,000 9.5% upside auto callable reverse exchangeables on Chesapeake Energy
By Angela McDaniels
Tacoma, Wash., Oct. 21 - JPMorgan Chase & Co. priced $300,000 of 9.5% upside auto callable reverse exchangeable notes due Oct. 24, 2011 linked to the common stock of Chesapeake Energy Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
The notes will be called at par if Chesapeake Energy stock closes above the initial share price on Jan. 19, April 19, July 19, 2011 or Oct. 19, 2011.
The payout at maturity will be par unless Chesapeake Energy stock closes below 70% of its initial share price during the life of the notes and the final share price is less than the initial share 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 JPMorgan's option, a cash amount equal to the value of those shares.
J.P. Morgan Securities LLC is the agent.
| Issuer: | JPMorgan Chase & Co.
|
| Issue: | Upside auto callable reverse exchangeable notes
|
| Underlying stock: | Chesapeake Energy Corp. (NYSE: CHK)
|
| Amount: | $300,000
|
| Maturity: | Oct. 24, 2011
|
| Coupon: | 9.5%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | If Chesapeake Energy stock falls below initial share price by more than protection amount during life of notes and final share price is less than initial share price, 45.5373 Chesapeake Energy shares or equivalent value in cash; otherwise, par
|
| Call: | Automatically at par if Chesapeake Energy stock closes above initial share price on Jan. 19, April 19, July 19, 2011 or Oct. 19, 2011
|
| Initial share price: | $21.96
|
| Protection amount: | $6.588, or 30% of initial share price
|
| Pricing date: | Oct. 19
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| Settlement date: | Oct. 20
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| Agent: | J.P. Morgan Securities LLC
|
| Fees: | 3.3%, including 2% for selling concessions
|
| Cusip: | 48124AS57
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