By Susanna Moon
Chicago, Feb. 26 - JPMorgan Chase & Co. priced a $1.38 million issue of 23% upside auto callable reverse exchangeable notes due Aug. 27, 2008 linked to the common stock of Research In Motion Ltd., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
The notes will be automatically called if the closing price of RIM stock on May 22 is greater than the initial share price. Investors will receive par plus accrued interest.
If the closing price of RIM stock falls below the knock-in price - 60% of the initial value - during the life of the notes and the final share price is less than the initial price, the payout at maturity will be a number of RIM shares equal to par divided by the initial share price or, at JPMorgan's option, the equivalent cash value.
Otherwise, the payout at maturity will be par.
J.P. Morgan Securities Inc. is the agent.
| Issuer: | JPMorgan Chase & Co.
|
| Issue: | Upside auto callable reverse exchangeable notes
|
| Underlying stock: | Research In Motion Ltd. (Nasdaq: RIM)
|
| Amount: | $1.38 million
|
| Maturity: | Aug. 27, 2008
|
| Coupon: | 23%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | If the stock falls below protection price during life of notes and finishes below initial price, 9.2635 Research In Motion shares or the equivalent cash value; otherwise, par
|
| Call: | At par plus accrued interest if Research In Motion stock is above the initial price on May 22
|
| Initial share price: | $107.95
|
| Protection price: | $43.18, or 40% of initial price
|
| Pricing date: | Feb. 22
|
| Settlement date: | Feb. 27
|
| Agent: | J.P. Morgan Securities Inc.
|
| Fees: | 3.99%, including 3.107% for selling concessions
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
