JPMorgan to price 13.5% reverse exchangeables linked to Circuit City

By Angela McDaniels

Seattle, April 4 - JPMorgan Chase & Co. plans to price an offering of reverse exchangeable notes due July 27, 2007 linked to the common stock of Circuit City Stores, Inc., according to an FWP filing with the Securities and Exchange Commission.

The three-month notes will pay 3.375% at maturity for an annualized rate of 13.5%.

The payout at maturity, in addition to interest, will be par unless Circuit City stock falls by more than 15% during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Circuit City shares equal to $1,000 divided by the initial share price or, at JPMorgan's option, the equivalent cash value.

The notes are expected to price on April 24 and settle on April 27.

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

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