Published on 5/7/2008 in the Prospect News Structured Products Daily.
New Issue: JPMorgan prices $988,000 9.25% notes linked to worst-performing of three stocks
By Angela McDaniels
Tacoma, Wash., May 7 - JPMorgan Chase & Co. priced $988,000 of 9.25% reverse exchangeable notes due May 8, 2009 linked to the worst-performing common stock of General Electric Co., Procter & Gamble Co. and Wells Fargo & Co., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
The payout at maturity will be par unless the closing price of any stock declines by more than 40% during the life of the notes, in which case the payout will be a number of shares of the worst-performing stock equal to $1,000 divided by the initial price of that stock, or the equivalent in cash.
If the cash value of the physical delivery amount is greater than $1,000, investors will receive par in cash in lieu of the shares.
J.P. Morgan Securities Inc. is the agent.
| Issuer: | JPMorgan Chase & Co.
|
| Issue: | Reverse exchangeable notes
|
| Underlying stocks: | General Electric Co. (NYSE: GE), Procter & Gamble Co. (NYSE: PG) and Wells Fargo & Co. (NYSE: WFC)
|
| Amount: | $988,000
|
| Maturity: | May 8, 2009
|
| Coupon: | 9.25%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | If any stock declines by more than its protection amount during the life of the notes, a number of shares of the worst-performing stock equal to its exchange ratio or the equivalent in cash; otherwise, par
|
| Initial share prices: | $33.00 for GE, $66.65 for Procter & Gamble, $31.27 for Wells Fargo
|
| Protection amounts: | $13.20 for GE, $26.66 for Procter & Gamble, $12.508 for Wells Fargo; 40% of initial share price
|
| Exchange ratios: | 30.3030 for GE, 15.0038 for Procter & Gamble, 31.9795 for Wells Fargo
|
| Pricing date: | May 6
|
| Settlement date: | May 8
|
| Agent: | J.P. Morgan Securities Inc.
|
| Fees: | 4.5%, including 3.25% for selling concessions
|
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