Chase Launches Alternative Financing Unit To Serve Middle Market Businesses.

Debt, equity to complement bank, asset-based lending 

CHICAGO -- Chase today announced that it has formed a new business unit, Chase Capital, to provide subordinated debt and equity to help privately-held companies grow or recapitalize their businesses. The company has closed three deals, including an equity investment in Chicago-based Republic Windows & Doors, LLC, in January and expects to close financing for four additional customers in the first quarter.

Chase Capital, based in Chicago, will finance growth, turnaround situations, and recapitalizations of Chase's middle market banking clients This new business will complement traditional bank credit as well as asset-based lending to companies throughout the United States and Canada.

"Chase Capital can help many companies that are looking to restructure debt, as well as companies whose growth and capital needs outpace what they can borrow through traditional bank-secured lending," said David Donovan, co-head of Chase Capital. "We see the need among Chase customers - and across the market - and we believe a bank-affiliated provider can have a competitive advantage throughout the business cycle."

Donovan co-leads Chase Capital with Dave Schabes, reuniting the team that ran Banc One Capital Markets from 2000 to 2002.

"We expect to generate most of our deals through Chase's extensive middle market bank," Schabes said. "Our bankers can now let their customers know that they can consider Chase for all their lending needs rather than turning to other alternative capital providers."

Chase Commercial Banking serves more than 30,000 customers throughout the Chase retail branch footprint.

Chase Capital's financing solutions include:

* Second-lien credit facilities

* Mezzanine loans

* Convertible bonds

* Preferred and common equity.

About Chase Capital

Chase Capital, a unit of JPMorgan Chase & Co. (NYSE: JPM), focuses on providing alternative capital solutions to middle market companies. JPMorgan Chase is a leading global financial services firm with assets of $1.4 trillion and operations in more than 50 countries. For more information, please go to www.jpmorganchase.com.