JPMorgan plans 0% semiannual review notes on Financial Select SPDR

By Susanna Moon

Chicago, Dec. 31– JPMorgan Chase & Co. plans to price 0% semiannual review notes due July 29, 2011 based on the Financial Select Sector SPDR fund, according to an FWP filing with the Securities and Exchange Commission.

The notes will be automatically called at increasing premiums if the fund is at or above its initial price on any of three semiannual review dates.

The redemption amount will be par plus at least 7.5% if the notes are called on July 26, 2010, par plus at least 15% if called on Jan. 26, 2011 and par plus at least 22.5% if called on July 26, 2011. The exact call premiums will be set at pricing.

If the notes are not called, investors will receive par at maturity if the fund price falls by up to 20%. If the fund price falls by more than 20%, investors will lose 1% for every 1% drop beyond the initial share price.

The notes are expected to price on Jan. 26 and settle on Jan. 29.

J.P. Morgan Securities Inc. is the agent.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.