New Issue: JPMorgan sells $1.661 million 10.3% reverse convertibles linked to Yahoo!

By Laura Lutz

Des Moines, Oct. 24 - JPMorgan Chase & Co. priced $1.661 million of 10.3% reverse exchangeable notes due Oct. 25, 2007 linked to Yahoo! Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.

Payout at maturity will be par in cash if Yahoo! stock stays at or above the protection price, 70% of the initial price of $23.21, between Oct. 20, 2006 and Oct. 22, 2007, and finishes at or above the initial price. Otherwise, the payout will be in Yahoo! stock, with the number of shares equal to $1,000 divided by the initial share price.

Issuer:	JP Morgan Chase & Co.
Issue:	Reverse exchangeable notes
Underlying stock:	Yahoo! Inc.
Amount:	$1.661 million
Maturity:	Oct. 25, 2007
Coupon:	10.3%, payable monthly
Price:	Par
Payout at maturity:	Par in cash if Yahoo! stock stays at or above the protection price of $16.25 and finishes at or above the initial price; otherwise shares of Yahoo! stock equal to $1,000 divided by the initial price
Initial price:	$23.21
Protection price:	$16.25, 70% of $23.21
Pricing date:	Oct. 20
Settlement date:	Oct. 25
Agent:	J.P. Morgan Securities Inc.
Agent fee:	4%

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