Published on 8/31/2010 in the Prospect News Structured Products Daily.
New Issue: JPMorgan prices $200,000 14% upside auto callable reverse exchangeables on Sprint
By Jennifer Chiou
New York, Aug. 31 - JPMorgan Chase & Co. priced $200,000 of 14% upside auto callable single observation reverse exchangeable notes due Aug. 31, 2011 linked to the common stock of Sprint Nextel Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
The notes will be automatically called at par if Sprint stock closes above the initial share price on any of the four call dates: Nov. 24, 2010, Feb. 23, 2011, May 25, 2011 and Aug. 26, 2011.
If the notes are not called, the payout at maturity will be par unless the final price of Sprint stock is less than 60% of the initial share price, in which case the payout will be a number of Sprint shares equal to $1,000 divided by the initial share price or, at JPMorgan's option, an 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
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| Underlying stock: | Sprint Nextel Corp. (Symbol: S)
|
| Amount: | $200,000
|
| Maturity: | Aug. 31, 2011
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| Coupon: | 14%, payable monthly
|
| Price: | Par
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| Payout at maturity: | If final price of Sprint stock has declined from initial price by more than protection amount, a number of | Sprint shares equal to $1,000 divided by the initial share price or, at JPMorgan's option, an equivalent amount in cash; otherwise, par
|
| Call: | Automatically at par if Sprint stock closes above initial share price on Nov. 24, 2010, Feb. 23, 2011, May 25, 2011 or Aug. 26, 2011
|
| Initial share price: | $4.01
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| Protection amount: | $1.604, 40% of initial price
|
| Pricing date: | Aug. 27
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| Settlement date: | Aug. 31
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| Agent: | J.P. Morgan Securities Inc.
|
| Fees: | 3.5%, including 2.5% for selling concessions
|
| Cusip: | 48124AZX8
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