By Marisa Wong
Madison, Wis., July 25 - JPMorgan Chase & Co. priced an additional $40 million of 0% daily liquidity notes due Nov. 21, 2014 linked to the Dow Jones-UBS Commodity Index 3 Month Forward Total Return, according to a 424B2 filing with the Securities and Exchange Commission.
This brings the total issue size to $195 million. The initial $65 million principal amount was issued on Nov. 23, 2010 and an additional $90 million was issued on March 5.
According to a previous 424B2 filing, agent J.P. Morgan Securities LLC purchased $65 million principal amount of the notes from the issuer at par on the inception date. On Feb. 28, the reopening date, the agent purchased all of the additional notes at the indicative note value as of that date.
Also on Feb. 28, the agent sold $60.7 million of the notes, all of which had been previously repurchased or will be retired. With the reopening, $94.3 million principal amount was outstanding to be offered from time to time.
According to the latest filing, as of July 23 the agent sold a total of $148,767,000 principal amount of the notes, of which $74,736,000 was previously repurchased. And as of July 23, $80,264,000 principal amount is outstanding. Of the amount outstanding, $6,233,000 is held by the agent.
Following the latest add-on, there will be $120,264,000 principal amount outstanding, of which $46,233,000 will be held by the agent.
The payout at maturity will be the indicative note value on Nov. 18, 2014.
The indicative value of each note will equal $1,000 on the pricing date. On each subsequent trading day, the indicative note value will equal the indicative note value on the preceding day multiplied by the index factor, minus the investor fee.
The index factor will equal the index closing level on that day divided by the index closing level on the preceding day.
On any trading day, the investor fee will equal the indicative note value of the preceding day times 0.8%, multiplied by the number of calendar days from the preceding trading day to the current trading day, divided by 360.
The notes are putable and callable beginning Nov. 23, 2011. Investors will receive the indicative note value on the relevant valuation date - three business days before the redemption date. Investors will be charged a repurchase fee of 0.2% if they choose to redeem the notes early.
| Issuer: | JPMorgan Chase & Co.
|
| Issue: | Daily liquidity notes
|
| Underlying index: | Dow Jones-UBS Commodity Index 3 Month Forward Total Return
|
| Amount: | $195 million (increased from $65 million)
|
| Maturity: | Nov. 21, 2014
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Indicative note value on Nov. 18, 2014; indicative value will equal $1,000 on the pricing date and for each subsequent trading day will equal the indicative value on the preceding day multiplied by the index factor, minus the investor fee
|
| Call: | At any time beginning Nov. 23, 2011; put option on daily basis at any time beginning Nov. 23, 2011; investors will receive the indicative note value minus a repurchase fee of 0.2%
|
| Initial index level: | 607.2879
|
| Pricing date: | Nov. 18, 2010 for $65 million, Feb. 28 for $90 million, July 23 for $40 million
|
| Settlement date: | Nov. 23, 2010 for initial tranche, March 5 for first add-on, July 26 for latest add-on
|
| Agent: | J.P. Morgan Securities LLC
|
| Fees: | None
|
| Cusip: | 48124A3C9
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