JPMorgan plans contingent income autocallable notes tied to Cobalt

By Marisa Wong

Madison, Wis., July 9 – JPMorgan Chase & Co. plans to price contingent income autocallable securities due July 21, 2016 linked to Cobalt International Energy, Inc. shares, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at a rate of at least 3% if the shares close at or above the 50% downside threshold level on the observation date for that quarter.

The notes will be called at par plus the contingent coupon if the stock closes at or above the initial price on any determination date other than the final date.

The payout at maturity will be par plus the final coupon unless the shares finish below the 50% downside threshold level, in which case investors will receive a number of Cobalt shares equal to $10 divided by the initial price or, at the issuer’s option, the cash equivalent.

J.P. Morgan Securities LLC is the agent with Morgan Stanley Wealth Management handling distribution.

The notes will price on July 17.

The Cusip number is 48127V207.

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