New Issue: JPMorgan sells $1.16 million 14.75% reverse exchangeables on DryShips

By Toni Weeks

San Diego, March 30 - JPMorgan Chase & Co. priced $1.16 million of 14.75% reverse exchangeable notes due June 30, 2011 linked to Dryships Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

The payout at maturity will be par unless the final share price is less than the initial share price and the closing price has dropped by more than 25% from the initial share price on any day during the life of the notes, in which case the payout will be a number of DryShips shares equal to $1,000 divided by initial share price or, at JPMorgan's option, a cash amount equal to the value of those shares.

J.P. Morgan Securities LLC is the agent.

Issuer:	JPMorgan Chase & Co.
Issue:	Reverse exchangeable notes
Underlying stock:	Dryships Inc. (Symbol: DRYS)
Amount:	$1,161,000
Maturity:	June 30, 2011
Coupon:	14.75%, payable monthly
Price:	Par
Payout at maturity:	If final share price is less than initial price and closing price has dropped more than 25%, or $1.2425, from initial price any day during life of notes, a number of DryShips shares equal to $1,000 divided by initial share price or equivalent in cash; otherwise, par
Initial share price:	$4.97
Protection amount:	$1.2425, or 25% of initial share price
Pricing date:	March 28
Settlement date:	March 31
Agent:	J.P. Morgan Securities LLC
Fees:	0.125%, which is for selling concessions
Cusip:	48125XHP4

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