Published on 9/11/2008 in the Prospect News Structured Products Daily.
New Issue: JPMorgan prices $45,000 14.8% reverse exchangeables linked to Freeport-McMoRan
By Angela McDaniels
Tacoma, Wash., Sept. 11 - JPMorgan Chase & Co. priced $45,000 of reverse exchangeable notes due March 12, 2009 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 7.4% for an annualized coupon of 14.8%. Interest is payable monthly.
The payout at maturity will be par unless Freeport-McMoRan stock falls by more than 40% 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 value of those shares in cash.
J.P. Morgan Securities Inc. is the agent.
Issuer: | JPMorgan Chase & Co.
|
Issue: | Reverse exchangeable notes
|
Underlying stock: | Freeport-McMoRan Copper & Gold Inc. (Symbol: FCX)
|
Amount: | $45,000
|
Maturity: | March 12, 2009
|
Coupon: | 14.8%, payable monthly
|
Price: | Par
|
Payout at maturity: | If Freeport-McMoRan stock declines by more than the protection amount during the life of the notes and the final share price is less than the initial share price, 15.3468 Freeport-McMoRan shares or the equivalent cash amount; otherwise, par
|
Initial share price: | $65.16
|
Protection amount: | $26.064, 40% of initial share price
|
Pricing date: | Sept. 9
|
Settlement date: | Sept. 12
|
Agent: | J.P. Morgan Securities Inc.
|
Fees: | 5.985%, including 3.743% for selling concessions
|
© 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.