Published on 8/20/2009 in the Prospect News Structured Products Daily.
New Issue: JPMorgan prices $1.4 million 11.6% upside auto callable reverse exchangeables tied to Valero
By Angela McDaniels
Tacoma, Wash., Aug. 20 - JPMorgan Chase & Co. priced $1.4 million of 11.6% upside auto callable single observation reverse exchangeable notes due Aug. 23, 2010 linked to the common stock of Valero Energy Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
The notes will be automatically called at par if Valero stock closes above the initial share price on Nov. 18, 2009, Feb. 18, 2010, May 18, 2010 or Aug. 18, 2010.
If the notes are not called, the payout at maturity will be par unless the closing price of Valero stock on Aug. 18, 2010 is less than 70% of the initial share price. In that 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
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| Underlying stock: | Valero Energy Corp. (NYSE: VLO)
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| Amount: | $1.4 million
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| Maturity: | Aug. 23, 2010
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| Coupon: | 11.6%, payable quarterly
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| Price: | Par
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| Payout at maturity: | If final share price has declined from initial share price by more than the protection amount, 57.971 Valero shares or equivalent in cash; otherwise, par
|
| Call: | Automatically at par if Valero stock closes above initial share price on Nov. 18, 2009, Feb. 18, 2010, May 18, 2010 or Aug. 18, 2010
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| Initial share price: | $17.25
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| Protection amount: | $5.175, 30% of initial price
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| Pricing date: | Aug. 18
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| Settlement date: | Aug. 21
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| Agent: | J.P. Morgan Securities Inc.
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| Fees: | 3.75%, including 3% for selling concessions
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