New Issue: JPMorgan Chase sells $3.875 million 11.2% notes linked to Whole Foods

By E. Janene Geiss

Philadelphia, April 26 - JPMorgan Chase & Co. priced a $3.875 million issue of reverse exchangeable notes due Oct. 26, 2007 linked to the common stock of Whole Foods Market, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The six-month notes will pay 5.6% for an annualized rate of 11.2%. Interest will be payable at maturity.

The payout at maturity, in addition to interest, will be par unless Whole Foods stock falls by more than 20% during the life of the notes and finishes below the initial share price of $47.79, in which case the payout will be a number Whole Foods shares equal to $1,000 divided by the initial share price or, at JPMorgan's option, the equivalent cash value.

J.P. Morgan Securities Inc. is the agent.

Issuer:	JPMorgan Chase & Co.
Issue:	Reverse exchangeable notes
Underlying stock:	Whole Foods Market, Inc.
Amount:	$3.875 million
Maturity:	Oct. 26, 2007
Coupon:	11.2%, payable at maturity
Price:	Par
Payout at maturity:	If Whole Foods stock falls by more than 20% during the life of the notes and finishes below the initial share price, 20.92 Whole Foods shares or, at JPMorgan's option, the equivalent cash value; otherwise, par
Initial share price:	$47.79
Pricing date:	April 24
Settlement date:	April 27
Agent:	J.P. Morgan Securities Inc.
Agent fees:	2.692%, includes 2.096% for selling concessions

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