Published on 5/29/2008 in the Prospect News Structured Products Daily.
New Issue: JPMorgan prices $1.67 million 14% reverse exchangeables linked to Allegheny
By Angela McDaniels
Tacoma, Wash., May 29 - JPMorgan Chase & Co. priced $1.67 million of reverse exchangeable notes due Aug. 29, 2008 linked to the common stock of Allegheny Technologies, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The three-month notes will pay 7% for an annualized coupon of 14%. Interest is payable monthly.
The payout at maturity will be par unless Allegheny stock falls by more than 35% during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Allegheny shares equal to $1,000 divided by the initial share price or, at JPMorgan's option, an equivalent amount in cash.
J.P. Morgan Securities Inc. is the agent.
Issuer: | JPMorgan Chase & Co.
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Issue: | Reverse exchangeable notes
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Underlying stock: | Allegheny Technologies, Inc. (Symbol: ATI)
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Amount: | $1,665,000
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Maturity: | Aug. 29, 2008
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Coupon: | 14%, payable monthly
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Price: | Par
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Payout at maturity: | If Allegheny 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, 13.6986 Allegheny shares or the equivalent cash amount; otherwise, par
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Initial share price: | $73.00
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Protection amount: | $25.55, 35% of initial share price
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Pricing date: | May 27
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Settlement date: | May 30
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Agent: | J.P. Morgan Securities Inc.
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Fees: | 3.842%, including 2.531% for selling concessions
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