By Laura Lutz
Des Moines, Jan. 14 - JPMorgan Chase & Co. priced a $2 million issue of 0% lesser index semiannual review notes due Jan. 25, 2010 linked to the S&P 500 index and the Nikkei 225 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be automatically called at increasing premiums if the index levels for both indexes are at or above their respective call levels on any of three semiannual review dates. The review dates will begin one year after issuance.
On the first review date, the call level for each index will be 70% of its initial level. On the second and third review dates, the call levels for each index will be equal to their respective initial levels.
The redemption amount will be par plus 10.45% if the notes are called on Jan. 20, 2009, par plus 15.675% if called on July 21, 2009 and par plus 20.9% if called on Jan. 20, 2010.
The payout at maturity will be par if neither index has declined by more than 10%. Investors will lose 1.1111% for each 1% that the lesser-performing index declines beyond 10%.
J.P. Morgan Securities Inc. is the agent.
| Issuer: | JPMorgan Chase & Co.
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| Issue: | Lesser index semiannual review notes
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| Underlying indexes: | Nikkei 225, S&P 500
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| Amount: | $2 million
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| Maturity: | Jan. 25, 2010
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| Coupon: | 0%
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| Price: | Par
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| Call: | Automatically called if either index level is at or above its call level on an semiannual review date; payout will be par plus 10.45% if called on Jan. 20, 2009, par plus 15.675% if called on July 21, 2009 and par plus 20.9% if called on Jan. 20, 2010
|
| Call levels: | 70% of initial index levels on Jan. 20, 2009; 100% of initial levels on July 21, 2009 and Jan. 20, 2010
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| Payout at maturity: | Par if neither index declines by more than 10%; investors lose 1.1111% for each 1% that lesser-performing index declines beyond 10%
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| Initial index levels: | 1,420.33 for S&P 500; 14,388.11 for Nikkei 225
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| Pricing date: | Jan. 10
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| Settlement date: | Jan. 15
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| Agent: | J.P. Morgan Securities Inc.
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| Fees: | 2.15%, including 1.075% for selling concessions
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