Published on 5/28/2008 in the Prospect News Structured Products Daily.
New Issue: JPMorgan prices $1.67 million 17% auto callable reverse exchangeables linked to Peabody Energy
By E. Janene Geiss
Philadelphia, May 28 - JPMorgan Chase & Co. priced a $1.67 million issue of 17% annualized upside auto callable reverse exchangeable notes due Dec. 1, 2008 linked to the common stock of Peabody Energy Corp., according to a 424B filing with the Securities and Exchange Commission.
Interest is payable monthly.
The notes will be called at par plus accrued interest if the closing price of Peabody stock on Aug. 26, 2008 is greater than the initial share price.
If the notes are not called, the payout at maturity will be par unless Peabody stock falls by more than the protection amount - 30% of the initial share price - during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Peabody shares equal to $1,000 divided by the initial share price or, at JPMorgan's option, the equivalent cash value.
J.P. Morgan Securities Inc. is the agent.
| Issuer: | JPMorgan Chase & Co.
|
| Issue: | Upside auto callable reverse exchangeable notes
|
| Underlying stock: | Peabody Energy Corp. (NYSE: BTU)
|
| Amount: | $1,665,000
|
| Maturity: | Dec. 1, 2008
|
| Coupon: | 17%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | If Peabody stock declines by more than the protection amount during the life of the notes and the final share price is less than the initial share price, 13.9043 shares or the equivalent cash value; otherwise, par
|
| Call: | Automatically at par plus accrued interest if Peabody stock closes above the initial share price on Aug. 26, 2008
|
| Initial share price: | $71.92
|
| Protection amount: | $21.576, 30% of initial share price
|
| Pricing date: | May 27
|
| Settlement date: | May 30
|
| Agent: | J.P. Morgan Securities Inc.
|
| Fees: | 3.364%, including 2.776% for selling concessions
|
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