JPMorgan plans autocallable contingent interest notes on Wells Fargo

By Angela McDaniels

Tacoma, Wash., March 27 - JPMorgan Chase & Co. plans to price autocallable contingent interest notes due April 17, 2013 linked to the common stock of Wells Fargo & Co., according to an FWP filing with the Securities and Exchange Commission.

If Wells Fargo shares close at or above the interest barrier, 80% of the initial share price, on a quarterly review date, the notes will pay a 2.5125% coupon that quarter, which is equivalent to 10.05% per year. If Wells Fargo shares close below the interest barrier, no coupon will be paid that quarter.

If Wells Fargo 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 2.5125%.

If the notes have not been called and the final share price is greater than or equal to the trigger level, 70% of the initial share price, the payout at maturity will be par plus 2.5125%. If the final share price is less than the trigger level, investors will be exposed to the decline of Wells Fargo shares from the initial share price.

The notes (Cusip: 48125VSV3) are expected to price March 30 and settle April 4.

J.P. Morgan Securities LLC is the agent.

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