JPMorgan plans capped single observation knock-out notes tied to Apple

By Marisa Wong

Madison, Wis., Nov. 13 - JPMorgan Chase & Co. plans to price 0% capped single observation knock-out notes due Dec. 4, 2013 linked to the common stock of Apple Inc., according to an FWP filing with the Securities and Exchange Commission.

A knock-out event occurs if the final share price is less than the initial share price by more than 20%.

If a knock-out event does not occur, the payout at maturity will be par plus the greater of the stock return and the contingent minimum return, which is expected to be at least 5%, subject to a maximum return of at least 32.05%. The exact contingent minimum return and cap will be set at pricing.

If a knock-out event occurs, the payout at maturity will be par plus the stock return. Investors will be fully exposed to losses.

The notes (Cusip: 48126DHX0) are expected to price Nov. 16 and settle Nov. 21.

J.P. Morgan Securities LLC is the agent.

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