Published on 12/28/2011 in the Prospect News Structured Products Daily.
New Issue: JPMorgan prices $1.56 million digital contingent coupon notes linked to 10 stocks
By Marisa Wong
Madison, Wis., Dec. 27 - JPMorgan Chase & Co. priced $1.56 million of digital contingent coupon notes due June 29, 2018 linked to basket of stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The equally weighted basket includes the common stocks of Altria Group, Inc., Amazon.com, Inc., Bristol-Myers Squibb Co., Colgate-Palmolive Co., General Mills, Inc., Goldman Sachs Group, Inc., Newmont Mining Corp., PepsiCo, Inc., Walgreen Co. and Wal-Mart Stores, Inc.
Interest is payable semiannually and will equal the sum of the weighted performances of the basket stocks, subject to a minimum coupon of 1.25% in each interest period (corresponding to a rate of 2.5% per year).
If a basket stock's underlying return is greater than or equal to zero, its performance will be equal to the coupon cap of 3% (corresponding to 6% per year). If its underlying return is negative, its performance will be the greater of its underlying return and negative 20%.
The payout at maturity will be par.
J.P. Morgan Securities LLC is the agent.
| Issuer: | JPMorgan Chase & Co.
|
| Issue: | Digital contingent coupon notes
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| Underlying stocks: | Altria Group, Inc. (NYSE: MO), Amazon.com, Inc. (Nasdaq: AMZN), Bristol-Myers Squibb Co. (NYSE: BMY), Colgate-Palmolive Co. (NYSE: CL), General Mills, Inc. (NYSE: GIS), Goldman Sachs Group, Inc. (NYSE: GS), Newmont Mining Corp. (NYSE: NEM), PepsiCo, Inc. (NYSE: PEP), Walgreen Co. (NYSE: WAG) and Wal-Mart Stores, Inc. (NYSE: WMT)
|
| Amount: | $1,556,000
|
| Maturity: | June 29, 2018
|
| Coupon: | Sum of weighted performances of basket stocks, subject to a minimum coupon of 2.5% per year; if basket stock's underlying return is greater than or equal to zero, its performance will be equal to 6% per year, and if its underlying return is negative, its performance will be the greater of the return and negative 20%; payable semiannually
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Initial prices: | $29.82 for Altria, $178.99 for Amazon.com, $35.09 for Bristol-Myers, $92.41 for Colgate-Palmolive, $40.31 for General Mills, $94.42 for Goldman Sachs, $60.99 for Newmont, $66.04 for PepsiCo, $33.92 for Walgreen and $59.19 for Wal-Mart
|
| Pricing date: | Dec. 22
|
| Settlement date: | Dec. 30
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| Agent: | J.P. Morgan Securities LLC
|
| Fees: | 5.31%, 3.58% for selling concessions
|
| Cusip: | 48125VEN6
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