Published on 9/17/2010 in the Prospect News Structured Products Daily.
New Issue: JPMorgan prices $5 million 19% upside auto callable reverse exchangeables on U.S. Steel
By Jennifer Chiou
New York, Sept. 17 - JPMorgan Chase & Co. priced $5 million of 19% upside auto callable reverse exchangeable notes due Sept. 20, 2011 linked to the common stock of United States Steel 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 U.S. Steel stock closes above the initial share price on any of the four call dates: Dec. 15, 2010, March 16, 2011, June 15, 2011 and Sept. 15, 2011.
If the notes are not called, the payout at maturity will be par unless the final price of U.S. Steel stock is less than 60% of the initial share price, in which case the payout will be a number of U.S. Steel 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: | Upside auto callable reverse exchangeable notes
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Underlying stock: | United States Steel Corp. (Symbol: X)
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Amount: | $5 million
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Maturity: | Sept. 20, 2011
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Coupon: | 19%, payable monthly
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Price: | Par
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Payout at maturity: | If final price of U.S. Steel stock has declined from initial price by more than protection amount, a number of U.S. Steel shares equal to $1,000 divided by the initial share price or, at JPMorgan's option, an equivalent amount in cash; otherwise, par
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Call: | Automatically at par if U.S. Steel stock closes above initial share price on Dec. 15, 2010, March 16, 2011, June 15, 2011 or Sept. 15, 2011
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Initial share price: | $45.78
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Protection amount: | $18.312, 40% of initial price
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Pricing date: | Sept. 15
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Settlement date: | Sept. 20
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Agent: | J.P. Morgan Securities Inc.
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Fees: | 1.15%, including 0.85% for selling concessions
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Cusip: | 48124AH91
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