JPMorgan plans contingent interest autocallables linked to Apple

By Angela McDaniels

Tacoma, Wash., June 20 – JPMorgan Chase Financial Co. LLC plans to price autocallable contingent interest notes due July 7, 2017 linked to the common stock of Apple Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be guaranteed by JPMorgan Chase & Co.

Each quarter, the notes will pay a contingent coupon if Apple shares close at or above the trigger value, 70% of the initial share price, on the review date for that quarter. The contingent coupon rate is expected to be 7% to 9% per year and will be set at pricing.

The notes will be automatically called at par plus the contingent coupon if Apple shares close at or above the initial share price on Jan. 3, 2017 or April 3, 2017.

The payout at maturity will be par plus the final contingent interest payment unless the final share price is less than the trigger value, in which case investors will be exposed to the decline in the share price from the initial share price.

J.P. Morgan Securities LLC is the agent.

The notes will price July 1.

The Cusip number is 46646EJB9.

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