Published on 5/27/2010 in the Prospect News Structured Products Daily.
New Issue: JPMorgan prices $800,000 9.75% callable reverse exchangeables on Ford
By Marisa Wong
Milwaukee, May 27 - JPMorgan Chase & Co. priced $800,000 of 9.75% upside auto callable single observation reverse exchangeable notes due May 27, 2011 linked to the common stock of Ford Motor Co., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
The notes will be automatically called at par plus accrued interest if the closing price of Ford stock is above the initial share price on any of four call dates. The call dates are Aug. 25, Nov. 23, Feb. 23, 2011 and May 24, 2011.
If the notes are not called, the payout at maturity will be par unless the closing price of Ford stock on May 24, 2011 is less than 70% of the initial share price, in which case the payout will be a number of Ford shares equal to $1,000 principal amount divided by the initial share price or, at JPMorgan's option, the equivalent amount in cash.
J.P. Morgan Securities Inc. is the agent.
| Issuer: | JPMorgan Chase & Co.
|
| Issue: | Upside auto callable single observation reverse exchangeable notes
|
| Underlying stock: | Ford Motor Co. (NYSE: F)
|
| Amount: | $800,000
|
| Maturity: | May 27, 2011
|
| Coupon: | 9.75%, payable monthly
|
| Price: | Par
|
| Call: | Automatically at par plus accrued interest if Ford stock closes above initial share price on Aug. 25, Nov. 23, Feb. 23, 2011 or May 24, 2011
|
| Payout at maturity: | If final share price has declined from initial share price by more than the protection amount, 90.7441 Ford shares or equivalent in cash; otherwise, par
|
| Initial share price: | $11.00
|
| Protection amount: | $3.30, 30% of initial price
|
| Pricing date: | May 25
|
| Settlement date: | May 28
|
| Agent: | J.P. Morgan Securities Inc.
|
| Fees: | 3.345%
|
| Cusip: | 48124ANW3
|
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