Published on 9/10/2010 in the Prospect News Structured Products Daily.
New Issue: JPMorgan prices $500,000 11% upside auto callable reverse exchangeables on Intel
By Marisa Wong
Madison, Wis., Sept. 10 - JPMorgan Chase & Co. priced $500,000 of 11% upside auto callable reverse exchangeable notes due Sept. 13, 2011 linked to the common stock of Intel Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
The notes will be automatically called at par if Intel stock closes above the initial share price on any of the four call dates: Dec. 8, March 9, June 8, 2011 and Sept. 8, 2011.
If the notes are not called, the payout at maturity will be par unless Intel shares decline by more than 25% from the initial price during the life of the notes and the final share price is below the initial share price, in which case the payout will be a number of Intel shares equal to $1,000 divided by the initial share price or, at JPMorgan's option, an equivalent value in cash.
J.P. Morgan Securities Inc. is the agent.
| Issuer: | JPMorgan Chase & Co.
|
| Issue: | Upside auto callable reverse exchangeable notes
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| Underlying stock: | Intel Corp. (Nasdaq: INTC)
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| Amount: | $500,000
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| Maturity: | Sept. 13, 2011
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| Coupon: | 11%, payable monthly
|
| Price: | Par
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| Payout at maturity: | If price of Intel stock ever falls from initial price by more than protection amount, 55.8659 Intel shares or, at issuer's option, an equivalent value in cash; otherwise, par
|
| Call: | Automatically at par if Intel stock closes above initial share price on Dec. 8, March 9, June 8, 2011 or Sept. 8, 2011
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| Initial share price: | $17.90
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| Protection amount: | $4.475, 25% of initial price
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| Pricing date: | Sept. 8
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| Settlement date: | Sept. 13
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| Agent: | J.P. Morgan Securities Inc.
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| Fees: | 3.2%, including 2.15% for selling concessions
|
| Cusip: | 48124AD87
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