By Jennifer Chiou
New York, June 27 - JPMorgan Chase & Co. priced $1.52 million of upside auto callable reverse exchangeable notes due Dec. 31, 2008 linked to the common stock of Freeport-McMoRan Copper & Gold Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The six-month notes will pay 10% for an annualized coupon of 20%. Interest is payable monthly.
The payout at maturity will be par unless Freeport-McMoRan stock falls by more than 35% during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Freeport-McMoRan shares equal to $1,000 divided by the initial share price or, at JPMorgan's option, the equivalent value in cash.
The notes will be automatically called at par if the closing price of Freeport-McMoRan shares on Sept. 25, 2008 is greater than the initial share price.
J.P. Morgan Securities Inc. is the agent.
| Issuer: | JPMorgan Chase & Co.
|
| Issue: | Upside auto callable reverse exchangeable notes
|
| Underlying stock: | Freeport-McMoRan Copper & Gold Inc. (Symbol: FCX)
|
| Amount: | $1.52 million
|
| Maturity: | Dec. 31, 2008
|
| Coupon: | 20%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | If Freeport-McMoRan stock falls by more than the protection amount during the life of the notes and the final share price is less than the initial share price, 8.5135 Freeport-McMoRan shares or the equivalent value in cash; otherwise, par
|
| Call: | Automatically at par if Freeport-McMoRan shares close above the initial share price on Sept. 25, 2008
|
| Initial share price: | $117.46
|
| Protection amount: | $41.111, 35% of initial share price
|
| Pricing date: | June 25
|
| Settlement date: | June 30
|
| Agent: | J.P. Morgan Securities Inc.
|
| Fees: | 3.771%, including 2.965% for selling concessions
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