By Toni Weeks
San Luis Obispo, Calif., April 4 - JPMorgan Chase & Co. priced $300,000 of autocallable contingent interest notes due April 4, 2014 linked to Vivus, Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
If Vivus shares close at or above the trigger level, 57% of the initial share price, on a quarterly review date, the notes will pay a 6.25% coupon that quarter, which is equivalent to 25% per year. If Vivus shares close below the trigger level, no coupon will be paid that quarter.
If Vivus shares close at or above the initial share price on any of the review dates other than the final review date, the notes will be automatically called at par plus 6.25%.
If the notes have not been called and the final share price is greater than or equal to the trigger level, the payout at maturity will be par plus 6.25%. If the final share price is less than the trigger level, investors will receive a number of shares equal to $1,000 divided by the initial stock price or, at the issuer's option, the cash value of those shares.
J.P. Morgan Securities LLC is the underwriter.
| Issuer: | JPMorgan Chase & Co.
|
| Issue: | Autocallable contingent interest notes
|
| Underlying stock: | Vivus, Inc. (Nasdaq: VVUS)
|
| Amount: | $300,000
|
| Maturity: | April 4, 2014
|
| Coupon: | 25% per year, payable quarterly, if the closing price of Vivus shares is equal to or greater than trigger price; otherwise, no coupon paid for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par in cash unless Vivus shares finish below trigger price, in which case 92.9368 Vivus shares or, at JPMorgan's option, the cash value of those shares
|
| Call: | At par plus contingent coupon if closing share price on first three quarterly valuation dates is greater than or equal to initial share price
|
| Initial share price: | $10.76
|
| Trigger price: | $6.1332, 57% of initial share price
|
| Pricing date: | April 2
|
| Settlement date: | April 5
|
| Underwriter: | J.P. Morgan Securities LLC
|
| Fees: | 3.5%
|
| Cusip: | 48126DL64
|
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