JPMorgan plans digital contingent coupon CDs on 10-stock basket

By Toni Weeks

San Diego, June 2 - JPMorgan Chase Bank, NA plans to price digital contingent coupon certificates of deposit due June 30, 2017 linked to an equally weighted basket of 10 common stocks, according to a term sheet.

The basket consists of the following stocks: Barrick Gold Corp., Amazon.com, Inc., Bristol-Myers Squibb Co., General Mills, Inc., Intel Corp., Altria Group, Inc., AT&T Inc., Time Warner Cable Inc., Wells Fargo & Co. and Whole Foods Market, Inc.

The notes will pay a coupon each year equal to the sum of the stock performances, subject to a floor of zero. If a stock's return is positive, its performance will be set to a fixed return of 8% to 10%. The actual coupon will be set at pricing. If a stock's return is negative, its performance will be the greater of the stock return and negative 25%.

The payment at maturity will be par plus the final coupon, if any.

The CDs (Cusip: 48123YA63) are expected to price June 27 and settle June 30.

J.P Morgan Securities LLC is the agent, and Incapital LLC is the distributor.

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