JPMorgan Chase’s $5 Billion Common Stock Offering

On June 2, 2009, JPMorgan Chase & Co. priced an offering of 142.0 million shares of its common stock at a price to the public of $35.25 per share, or approximately $5 billion in the aggregate. The offering has been launched to satisfy a supervisory condition for TARP (Troubled Asset Relief Program) repayment that requires the largest bank holding companies to demonstrate access to the equity capital markets. The underwriter will have a 30-day option to purchase up to an additional 21.3 million shares of common stock from the company, solely to cover over-allotments.

Cravath is representing J.P. Morgan Securities Inc. as sole bookrunning manager and underwriter for the transaction. The lawyers involved in this matter include partner William V. Fogg, senior attorney G. Douglas Johnson and associate K. Ramey Watkins on corporate matters.