JPMorgan to issue 18% notes linked to least-performing Dow Industrials stock

By Jennifer Chiou

New York, Jan. 8 - JPMorgan Chase & Co. plans to sell 18% reverse exchangeable notes due Jan. 30, 2008 linked to the least-performing common stock in the Dow Jones Industrial Average during the life of the notes, according to an FWP filing with the Securities and Exchange Commission.

Interest will be payable monthly.

The pricing date is expected to be Jan. 26 with settlement on Jan. 31.

The payout at maturity will be par unless any stock included in the Dow Industrials - except for JPMorgan's own stock - falls below its protection price during the life of the notes, in which case the payout will be a number of shares of the least-performing stock equal to $1,000 divided by the stock's initial share price. If the cash value of the physical delivery amount is greater than $1,000, investors will receive par in cash in lieu of the shares.

The protection price will be 40% of the initial share price.

J.P. Morgan Securities Inc. will be the agent for the offering.

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