JPM plans 14% upside auto callable reverse exchangeables tied to Sprint

By Jennifer Chiou

New York, Aug. 23 - JPMorgan Chase & Co. plans to price upside auto callable single observation reverse exchangeable notes due Aug. 31, 2011 linked to the common stock of Sprint Nextel Corp., according to a term sheet.

The coupon is expected to be at least 14% and will be set at pricing. Interest is payable monthly.

The notes will be automatically called at par if Sprint Nextel stock closes above the initial share price on Nov. 24, 2010, Feb. 23, 2011, May 25, 2011 or Aug. 26, 2011.

If the notes are not called, the payout at maturity will be par unless the final price of Sprint Nextel stock is less than 60% of the initial share price, in which case the payout will be a number of Sprint Nextel shares equal to $1,000 divided by the initial share price or, at JPMorgan's option, an equivalent amount in cash.

The notes (Cusip 48124AZX8) are expected to price on Aug. 26 and settle on Aug. 31.

J.P. Morgan Securities Inc. is the agent. Incapital LLC is the distributor.

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