Published on 4/29/2010 in the Prospect News Structured Products Daily.
New Issue: JPM prices $1.3 million 10% single observation reverse exchangeables on Freeport-McMoRan
By Jennifer Chiou
New York, April 29 - JPMorgan Chase & Co. priced $1.3 million of 10% upside auto callable single observation reverse exchangeable notes due April 29, 2011 linked to the common stock of Freeport-McMoRan Copper & Gold Inc., according to 424B2 filing with the Securities and Exchange Commission.
Interest will be payable monthly.
The notes will be automatically called at par if Freeport-McMoRan stock closes above the initial share price on any of four call dates, which are July 28, 2010, Oct. 27, 2010, Jan. 26, 2011 and April 26, 2011.
If the notes are not called, the payout at maturity will be par unless the closing price of Freeport-McMoRan stock on April 26, 2011 is less than 80% of 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 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: | Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX)
|
| Amount: | $3.1 million
|
| Maturity: | April 29, 2011
|
| Coupon: | 10%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | If final share price on April 26, 2011 has declined from initial share price by more than the protection amount, 13.132 Freeport-McMoRan shares or equivalent in cash; otherwise, par
|
| Call: | Automatically at par if Freeport-McMoRan stock closes above initial share price on July 28, 2010, Oct. 27, 2010, Jan. 26, 2011 or April 26, 2011
|
| Initial share price: | $76.15
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| Protection amount: | $15.23, 20% of initial price
|
| Pricing date: | April 27
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| Settlement date: | April 30
|
| Agent: | J.P. Morgan Securities Inc.
|
| Fees: | 3.935%, including 3.25% for selling concessions
|
| Cusip: | 48124AMZ7
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