By Angela McDaniels
Tacoma, Wash., Jan. 29 - JPMorgan Chase & Co. priced $500,000 of upside auto callable single observation reverse exchangeable notes due July 31, 2009 linked to the common stock of Valero Energy Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The six-month notes will pay 7% for an annualized coupon of 14%. Interest is payable monthly.
The notes will be automatically called at par if Valero stock closes above the initial share price on April 27, 2009.
The payout at maturity will be par unless the closing price of Valero stock on July 28, 2009 is less than 55% of the initial share price, in which case the payout will be a number of Valero shares equal to $1,000 divided by the initial share price or, at JPMorgan's option, the 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
|
| Underlying stock: | Valero Energy Corp. (NYSE: VLO)
|
| Amount: | $500,000
|
| Maturity: | July 31, 2009
|
| Coupon: | 14%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | If final share price has declined from initial share price by more than the protection amount, 39.604 Valero shares or equivalent in cash; otherwise, par
|
| Call: | Automatically at par if Valero stock closes above initial share price on April 27, 2009
|
| Initial share price: | $25.25
|
| Protection amount: | $11.3625, 45% of initial price
|
| Pricing date: | Jan. 28
|
| Settlement date: | Jan. 30
|
| Agent: | J.P. Morgan Securities Inc.
|
| Fees: | 3.92%, including 2.92% for selling concessions
|
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