JPMorgan to issue 29.5% notes linked to least-performing Dow industrials stock

By E. Janene Geiss

Philadelphia, July 23 - JPMorgan Chase & Co. plans to sell reverse exchangeable notes due Aug. 14, 2008 linked to the least-performing common stock in the Dow Jones Industrial Average index during the life of the notes, according to an FWP filing with the Securities and Exchange Commission.

The exact coupon will be determined at pricing and be no less than 29.5%. Interest will be payable monthly.

The notes are expected to price Aug. 10 and settle Aug. 15.

The payout at maturity will be par unless any stock included in the Dow Industrial Average - except for JPMorgan's own stock - falls below its protection price during the life of the notes, in which case the payout will be a number of shares of the least-performing stock equal to $1,000 divided by the stock's initial share price. If the cash value of the physical delivery amount is greater than $1,000, investors will receive par in cash.

The protection price will be 70% of the initial share price.

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

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