New Issue: JPMorgan prices $993,000 16.25% reverse exchangeables tied to Netflix

By Toni Weeks

San Diego, Jan. 31 - JPMorgan Chase & Co. priced $993,000 of 16.25% annualized reverse exchangeable notes due April 30, 2012 linked to Netflix, 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 Netflix stock closes below the trigger price - 55% of the initial share price - during the life of the notes and the final share price is less than the initial share price, in which case the payout will be a number of shares of Netflix stock equal to $1,000 divided by the initial share price or, at the issuer'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:	Netflix, Inc. (Symbol: NFLX)
Amount:	$993,000
Maturity:	April 30, 2012
Coupon:	16.25%, payable monthly
Price:	Par
Payout at maturity:	If stock falls by more than protection amount during life of notes and final share price is less than initial share price, 8.0782 shares of Netflix stock or equivalent in cash; otherwise, par
Initial share price:	$123.79
Protection amount:	$55.7055, or 45% of initial share price
Physical delivery amount:	8.0782 shares per $1,000 principal amount of notes
Pricing date:	Jan. 27
Settlement date:	Jan. 31
Agent:	J.P. Morgan Securities LLC
Fees:	1.25%, used for selling concessions
Cusip:	48125VKD1

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