JPMorgan to price contingent coupon CDs linked to commodity basket

By Angela McDaniels

Tacoma, Wash., Dec. 29 - JPMorgan Chase Bank, NA plans to price contingent coupon market-linked certificates of deposit due Jan. 25, 2017 linked to a commodity basket, according to a term sheet.

The basket includes equal weights of copper, corn, nickel, palladium, platinum, silver, soybeans, zinc, the S&P GSCI Brent Crude Index Excess Return and the S&P GSCI Livestock Index Excess Return.

The CDs will pay interest in January of each year. The coupon will be the sum of the weighted performances of the basket components, subject to a floor of zero.

If a basket component's return is greater than zero, its performance will be fixed at 9.5% to 12.5%, with the exact fixed amount to be set at pricing. If a basket component's return is negative, its performance will be the greater of the return and negative 20%.

The payout at maturity will be par.

The CDs (Cusip 48123YSB3) are expected to price Jan. 25 and settle Jan. 28.

J.P. Morgan Securities LLC is the agent.

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