By E. Janene Geiss
Philadelphia, April 22 - JPMorgan Chase & Co. priced $575,000 of 19% annualized reverse exchangeable notes due Oct. 23, 2008 linked to the least-performing common stock in a basket of five companies, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the common stock of Peabody Energy Corp., Freeport-McMoRan Copper & Gold, Inc., Halliburton Co., Schlumberger Ltd. and Exxon Mobil Corp.
Interest is payable monthly.
The payout at maturity will be par if every basket stock stays at or above 60% of its initial level during the life of the notes. Otherwise, the payout will be a number of shares of the worst-performing stock equal to par divided by the initial price of that stock, or the equivalent in cash.
If the value of the shares is greater than $1,000, investors will instead receive par in cash.
J.P. Morgan Securities Inc. is the agent.
| Issuer: | JPMorgan Chase & Co.
|
| Issue: | Reverse exchangeable notes
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| Underlying stocks: | Peabody Energy Corp. (NYSE: BTU), Freeport-McMoRan Copper & Gold, Inc. (NYSE: FCX), Halliburton Co. (NYSE: HAL), Schlumberger Ltd. (NYSE: SLB) and Exxon Mobil Corp. (NYSE: XOM)
|
| Amount: | $575,000
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| Maturity: | Oct. 23, 2008
|
| Coupon: | 19%, payable monthly
|
| Price: | Par
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| Payout at maturity: | Par if every reference stock stays at or above protection level; otherwise, a number of shares of the worst-performing stock equal to par divided by that stock's initial share price, or equivalent in cash
|
| Protection amounts: | 40% of initial share prices
|
| Pricing date: | April 18
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| Settlement date: | April 23
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| Agent: | J.P. Morgan Securities Inc.
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| Fees: | 4.25% including 3.125% for selling concessions
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