Published on 7/20/2010 in the Prospect News Structured Products Daily.
New Issue: JPM sells $1 million callable single observation reverse exchangeables on Schlumberger
By Marisa Wong
Madison, Wis., July 20 - JPMorgan Chase & Co. priced $1 million of 10% upside auto callable single observation reverse exchangeable notes due July 21, 2011 linked to the common stock of Schlumberger NV (Schlumberger Ltd.), according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable monthly.
The notes will be automatically called at par if Schlumberger stock closes above the initial share price on Oct. 18, Jan. 18, April 18, 2011 or July 18, 2011.
If the notes are not called, the payout at maturity will be par unless the closing price of Schlumberger stock on July 18, 2011 is less than 75% of the initial share price, in which case the payout will be a number of Schlumberger shares equal to $1,000 divided by the initial share price or, at JPMorgan's option, the equivalent value 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: | Schlumberger NV (Schlumberger Ltd.) (Symbol: SLB)
|
| Amount: | $1 million
|
| Maturity: | July 21, 2011
|
| Coupon: | 10%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | Par in cash unless Schlumberger shares fall below the protection price of $42.51, 75% of the initial price, and finish below the initial price, in which case 17.6429 shares of Schlumberger stock
|
| Call: | Automatically at par if Schlumberger stock closes above the initial price on Oct. 18, Jan. 18, April 18, 2011 or July 18, 2011
|
| Initial price: | $56.68
|
| Protection price: | $42.51, 75% of $56.68
|
| Exchange ratio: | 17.6429
|
| Pricing date: | July 16
|
| Settlement date: | July 21
|
| Agent: | J.P. Morgan Securities Inc.
|
| Fees: | 4.6%
|
| Cusip: | 48124AWY9
|
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