JPMorgan to issue reverse exchangeables linked to least performing of four banking stocks

By E. Janene Geiss

Philadelphia, April 7 - JPMorgan Chase & Co. plans to sell reverse exchangeable notes due July 31, 2008 linked to the least performing of four banking stocks during the life of the notes, according to an FWP filing with the Securities and Exchange Commission.

The three-month notes will pay interest of at least 4% for an annualized rate of at least 16%. The exact coupon will be determined at pricing. Interest will be payable monthly.

The reference stocks are Bank of America Corp., Citigroup Inc., Goldman Sachs Group, Inc. and Merrill Lynch & Co., Inc.

The payout at maturity will be par unless any of the reference stocks fall 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 40% of the initial share price.

The notes are expected to price April 25 and settle April 30.

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

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