By Angela McDaniels
Tacoma, Wash., Jan. 12 - JPMorgan Chase & Co. priced an additional $4.2 million of 10% equity-linked notes due Jan. 14, 2011 linked to the common stock of EMC Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The company priced $28 million of the notes Jan. 7. The total issue size is now $32.2 million
Each note has a face amount of $17.71, which is equal to the initial strike price. The initial strike price was selected by the calculation agent and is greater than the closing price of EMC stock on the pricing date, which was $17.56.
Interest is payable monthly.
If the final share price is less than 111.5% of the initial strike price, the payout at maturity will equal 89.6861% of the final share price, subject to a minimum of $12.71 per note.
If the final share price is greater than or equal to 111.5% of the initial strike price and less than 125% of the initial strike price, the payout will be par.
Otherwise, the payout will be par plus 0.65% for every 1% that the final share price exceeds 125% of the initial strike price.
At its option, JPMorgan can make the payout in cash or EMC stock.
J.P. Morgan Securities Inc. is the agent.
| Issuer: | JPMorgan Chase & Co.
|
| Issue: | Equity-linked notes
|
| Underlying stock: | EMC Corp. (Symbol: EMC)
|
| Amount: | $32,199,932, upsized from $27,999,953
|
| Maturity: | Jan. 14, 2011
|
| Coupon: | 10%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | If final share price is less than upper put strike price, 89.6861% of the final share price, subject to minimum payout of $12.71 per note; if final share price is greater than or equal to upper put strike price and less than call strike price, par; otherwise, par plus 65% of the amount by which the final share price exceeds the call strike price; payable in cash or stock
|
| Initial strike price: | $17.71
|
| Upper put strike price: | $19.74665, 111.5% of initial strike price
|
| Call strike price: | $22.1375, 125% of initial strike price
|
| Pricing date: | Jan. 7
|
| Settlement date: | Jan. 14
|
| Agent: | J.P. Morgan Securities Inc.
|
| Fees: | 0.15%
|
| Cusip: | 46634E726
|
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