Published on 10/29/2009 in the Prospect News Structured Products Daily.
New Issue: JPMorgan prices $1.5 million 11.75% upside auto callable reverse exchangeables tied to Wells Fargo
By E. Janene Geiss
Philadelphia, Oct. 29 - JPMorgan Chase & Co. priced $1.5 million of 11.75% upside auto callable single observation reverse exchangeable notes due Oct. 29, 2010 linked to the common stock of Wells Fargo & Co., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
The notes will be automatically called at par if Wells Fargo stock closes above the initial share price any of four evaluation dates. The notes will pay an interest rate of 2.9375% if called on Jan. 27, 2010, 5.875% if called on April 27, 2010, 8.8125% if called on July 27, 2010 or 11.75% if called on Oct. 26, 2010.
If the notes are not called, the payout at maturity will be par unless the closing price of Wells Fargo stock is less than 70% of the initial share price on the observation date of Oct. 26, 2010. In that case, the payout will be a number of Wells Fargo 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: | Wells Fargo & Co. (NYSE: WFC)
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| Amount: | $1.5 million
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| Maturity: | Oct. 29, 2010
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| Coupon: | 11.75%, payable quarterly
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| Price: | Par
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| Payout at maturity: | If final share price on Oct. 26, 2010 has declined from initial share price by more than the protection amount, 36.4166 Wells Fargo shares or equivalent in cash; otherwise, par
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| Call: | Automatically at par if Wells Fargo stock closes above initial share price on Jan. 27, 2010, April 27, 2010, July 27, 2010 or Oct. 26, 2010
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| Initial share price: | $27.46
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| Protection amount: | $8.238, 30% of initial price
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| Pricing date: | Oct. 28
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| Settlement date: | Oct. 30
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| Agent: | J.P. Morgan Securities Inc.
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| Fees: | 3.5%, including 3% for selling concessions
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