JPMorgan to issue 20% bearish reverse exchangeables linked to homebuilding stocks

By Jennifer Chiou

New York, Oct. 10 - JPMorgan Chase & Co. plans to price an issue of 20% bearish reverse exchangeable notes due Oct. 30, 2007 linked to a basket of homebuilding stocks, according to an FWP filing with the Securities and Exchange Commission.

The underlying basket includes equal weights of Centex Corp., D.R. Horton, Inc., KB Home, Lennar Corp. and Pulte Homes, Inc.

At maturity, investors will receive par in cash unless the final price of any of the stocks is greater than its initial level and it has closed at or above 150% of the initial level at any time during the life of the notes. If the trigger is hit and any of the stocks close above the initial level, investors will receive par minus the gain on the best performing stock, with a floor of zero.

The notes will price on Oct. 24 and settle on Oct. 27.

J.P. Morgan Securities Inc. will be the agent.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.