New Issue: JPMorgan sells $145,000 17.25% single observation reverse convertibles tied to Freeport

By Susanna Moon

Chicago, Jan. 16 - JPMorgan Chase & Co. priced $145,000 of 17.25% single observation reverse convertible notes due July 20, 2009 linked to Freeport-McMoRan Copper & Gold Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.

Payout at maturity will be par in cash unless Freeport-McMoRan shares fall below the protection price on the observation date of July 15, in which case investors will receive a number of Freeport-McMoRan shares equal to $1,000 divided by the initial share price, or at JPMorgan's option, the equivalent amount in cash. The protection level will be 50% of the initial share price.

J.P. Morgan Securities Inc. is the agent.

Issuer:	JPMorgan Chase & Co.
Issue:	Single observation reverse convertible notes
Underlying stock:	Freeport-McMoRan Copper & Gold Inc. (Symbol: FCX)
Amount:	$145,000
Maturity:	July 20, 2009
Coupon:	17.25%, payable monthly
Price:	Par
Payout at maturity:	Par in cash unless Freeport-McMoRan shares fall below the protection price of on the observation date, in which case 42.2119 shares of Freeport-McMoRan stock
Initial price:	$23.69
Protection price:	$11.845, 50% of $23.69
Exchange ratio:	42.2119
Observation date:	July 15
Pricing date:	Jan. 15
Settlement date:	Jan. 20
Agent:	J.P. Morgan Securities Inc.
Fees:	6%, including 3.75% for selling concessions

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