JPMorgan plans contingent interest autocallable notes linked to Apple

By Devika Patel

Knoxville, Tenn., Dec. 29 – JPMorgan Chase & Co. plans to price autocallable contingent interest notes due Jan. 23, 2017 linked to Apple Inc. shares, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of between 7% and 9% if the stock closes at or above the barrier level, 72.5% of the initial level, on the review date for that quarter. The exact interest rate will be set at pricing.

The notes will be called at par plus the contingent coupon beginning July 15, 2016 if Apple shares close at or above the initial share price on any review date other than the first and final dates.

The payout at maturity will be par plus the final contingent interest payment unless the share price closes at less than the barrier level during the life of the notes, in which case investors will receive a number of Apple shares equal to $1,000 divided by the initial share price or, at the issuer’s option, an amount in cash equal to the value of those shares.

J.P. Morgan Securities LLC is the agent.

The notes (Cusip: 48128AAB9) will price on Jan. 15 and settle on Jan. 21.

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