By Angela McDaniels
Tacoma, Wash., July 1 – JPMorgan Chase Financial Co. LLC priced $1.1 million of 0.125% callable cash-settled synthetic convertible notes due July 7, 2023 linked to the common stock of Apple Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by JPMorgan Chase & Co.
Interest is payable semiannually.
For each $1,000 principal amount of notes, the payout at maturity will be the greater of $1,000 and the alternative settlement amount on the valuation date.
On any valuation date, the alternative settlement amount is equal to $1,000 multiplied by the quotient of the volume-weighted average price of the stock on that valuation date divided by the threshold price, which is 127% of the initial strike price.
The initial strike price, $94.41, was determined on the pricing date by the calculation agent. It is not equal to the volume-weighted average price of the stock or the regular official weekday closing share price on the pricing date.
The notes are callable beginning July 1, 2019. The payout would be the greater of $1,000 and the alternative settlement amount.
The notes are also putable beginning July 1, 2019. The payout would be an amount equal to the alternative settlement amount.
J.P. Morgan Securities LLC is the agent.
| Issuer: | JPMorgan Chase Financial Co. LLC
|
| Guarantor: | JPMorgan Chase & Co.
|
| Issue: | Callable cash-settled synthetic convertible notes
|
| Underlying stock: | Apple Inc. (Nasdaq: AAPL)
|
| Amount: | $1.1 million
|
| Maturity: | July 7, 2023
|
| Coupon: | 0.125%, payable semiannually
|
| Price: | Par
|
| Payout at maturity: | Greater of $1,000 and alternative settlement amount
|
| Alternative settlement amount: | $1,000 multiplied by quotient of volume-weighted average price of stock divided by threshold price
|
| Call option: | At greater of $1,000 and alternative settlement amount beginning July 1, 2019
|
| Put option; | At alternative settlement amount beginning July 1, 2019
|
| Initial strike price: | $94.41
|
| Threshold price: | $119.9007, 127% of initial strike price
|
| Pricing date: | June 29
|
| Settlement date: | July 7
|
| Underwriter: | J.P. Morgan Securities LLC
|
| Fees: | None
|
| Cusip: | 46646ELJ9
|
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