By Marisa Wong
Madison, Wis., July 3 - JPMorgan Chase & Co. priced $2.5 million of autocallable contingent interest notes due July 17, 2013 linked to the common stock of Starbucks Corp., according to a 424B2 filing with the Securities and Exchange Commission.
If Starbucks shares close at or above the trigger level, 75% of the initial share price, on a quarterly review date, the notes will pay a 3.6125% coupon that quarter, which is equivalent to 14.45% per year. If Starbucks shares close below the trigger level, no coupon will be paid that quarter.
If Starbucks shares close at or above the initial share price on any of the review dates other than the final review date, the notes will be automatically called at par plus the contingent coupon.
If the notes have not been called and the final share price is greater than or equal to the trigger level, the payout at maturity will be par plus the contingent coupon. If the final share price is less than the trigger level, investors will be exposed to the decline of Starbucks shares from the initial share price.
J.P. Morgan Securities LLC is the agent.
| Issuer: | JPMorgan Chase & Co.
|
| Issue: | Autocallable contingent interest notes
|
| Underlying stock: | Starbucks Corp. (Nasdaq: SBUX)
|
| Amount: | $2.5 million
|
| Maturity: | July 17, 2013
|
| Coupon: | If Starbucks shares close at or above trigger level on review date, 3.6125% coupon will be paid that quarter (equivalent to 14.45% per year); if Starbucks shares close below trigger level, no coupon will be paid that quarter
|
| Price: | Par
|
| Payout at maturity: | If final share price is greater than or equal to trigger level, par plus contingent coupon; otherwise, full exposure to decline of Starbucks shares from initial share price
|
| Call: | Automatically at par plus 3.6125% if Starbucks shares close at or above initial share price on Oct. 11, Jan. 10, 2013 or April 11, 2013
|
| Initial share price: | $53.323
|
| Trigger level: | $39.99, 75% of initial share price
|
| Pricing date: | June 29
|
| Settlement date: | July 5
|
| Agent: | J.P. Morgan Securities LLC
|
| Fees: | 1%
|
| Cusip: | 48125VM98
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