JPMorgan to issue 30.5% notes linked to least-performing Dow industrials stock

By Susanna Moon

Chicago, Aug. 31 - JPMorgan Chase & Co. plans to sell 30.5% annualized reverse exchangeable notes due March 28, 2008 linked to the least-performing common stock in the Dow Jones Industrial Average index, according to an FWP filing with the Securities and Exchange Commission.

The six-month notes will pay at least 30.5%, with the exact rate to be set at pricing. Interest is payable monthly.

The payout at maturity will be par unless any stock included in the Dow industrials - excluding JPMorgan stock - falls below its protection price of 40% of the initial share 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 or, at the bank's election, the cash equivalent.

The notes are expected to price on Sept. 26 and settle on Sept. 28.

J.P. Morgan Securities Inc. is the agent.

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