By Jennifer Chiou
New York, Sept. 25 - JPMorgan Chase & Co. priced $18,891,000 of autocallable contingent interest notes due Oct. 9, 2013 linked to Caterpillar Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
If Caterpillar shares close at or above the trigger level, 75% of the initial share price, on a quarterly review date, the notes will pay a 3.275% coupon that quarter, which is equivalent to 13.1% per year. If Caterpillar shares close below the trigger level, no coupon will be paid that quarter.
If Caterpillar shares close at or above the initial share price on any of the review dates other than the final review date, the notes will be automatically called at par plus 3.275%.
If the notes have not been called and the final share price is greater than or equal to the trigger level, the payout at maturity will be par plus 3.275%. If the final share price is less than the trigger level, investors will be exposed to the decline of Caterpillar shares from the initial share price.
J.P. Morgan Securities LLC is the underwriter.
| Issuer: | JPMorgan Chase & Co.
|
| Issue: | Autocallable contingent interest notes
|
| Underlying stock: | Caterpillar Inc. (NYSE: CAT)
|
| Amount: | $18,891,000
|
| Maturity: | Oct. 9, 2013
|
| Coupon: | 13.1% per year, payable quarterly, if the closing price of Caterpillar shares is equal to or greater than trigger price; otherwise, no coupon paid for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par in cash unless Caterpillar shares finish below downside threshold price, in which case investors share in losses
|
| Call: | At par plus contingent coupon if closing share price on first three quarterly valuation dates is greater than or equal to initial share price
|
| Initial share price: | $91.72
|
| Downside threshold price: | $68.79, 75% of initial share price
|
| Pricing date: | Sept. 21
|
| Settlement date: | Sept. 26
|
| Underwriter: | J.P. Morgan Securities LLC
|
| Fees: | 1%
|
| Cusip: | 48126DAA7
|
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