JPMorgan plans contingent interest range notes linked to basket of energy stocks

By Laura Lutz

Des Moines, Jan. 12 - JPMorgan Chase & Co. plans to price an issue of contingent interest range notes due July 31, 2009 linked to a basket of energy companies, according to an FWP filing with the Securities and Exchange Commission.

The basket includes Chevron Corp., ConocoPhillips and Exxon Mobil Corp.

Each month, the notes will accrue interest at an annual rate of 10.25% if, on the observation date for that month, the closing prices of all of the reference stocks are within the protection range.

The downside protection amount for each stock will be 80% of the stock's initial price, and the upside protection amount will be 110% of the initial price.

If any reference stock's price on an observation date is lower than the downside protection amount or higher than the upside protection amount, the notes will not pay interest for that month.

In each month, the observation date will be the third business day before the last calendar day of each month.

The stocks are expected to price on Jan. 26 and settle on Jan. 31.

J.P. Morgan Securities Inc. will be the agent.

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