Published on 2/29/2012 in the Prospect News Structured Products Daily.
New Issue: JPMorgan prices $1.89 million digital contingent coupon notes linked to 10 stocks
By Marisa Wong
Madison, Wis., Feb. 29 - JPMorgan Chase & Co. priced $1,894,000 of digital contingent coupon notes due Feb. 28, 2018 linked to a 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., Barrick Gold Corp., CenturyLink, Inc., Kinross Gold Corp., Lorillard, Inc., Mead Johnson Nutrition Co., PG&E Corp., Time Warner Cable Inc., Verizon Communications Inc. and Walgreen Co.
Interest is payable annually and will equal the sum of the weighted performances of the basket stocks, subject to a minimum coupon of 1%.
If a basket stock's underlying return is greater than or equal to zero, its performance will be equal to the coupon cap of 8.5%. If its underlying return is negative, its performance will be the greater of its underlying return and negative 30%.
The payout at maturity will be par.
J.P. Morgan Securities LLC is the agent.
| Issuer: | JPMorgan Chase & Co.
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| Issue: | Digital contingent coupon notes
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| Underlying stocks: | Altria Group, Inc. (NYSE: MO), Barrick Gold Corp. (NYSE: ABX), CenturyLink, Inc. (NYSE: CTL), Kinross Gold Corp. (NYSE: KGC), Lorillard, Inc. (NYSE: LO), Mead Johnson Nutrition Co. (NYSE: MJN), PG&E Corp. (NYSE: PCG), Time Warner Cable Inc. (NYSE: TWC), Verizon Communications Inc. (NYSE: VZ) and Walgreen Co. (NYSE: WAG)
|
| Amount: | $1,894,000
|
| Maturity: | Feb. 28, 2018
|
| Coupon: | Sum of weighted performances of basket stocks, subject to a minimum coupon of 1%; if basket stock's underlying return is greater than or equal to zero, its performance will be equal to 8.5%, and if its underlying return is negative, its performance will be the greater of the return and negative 30%; payable annually
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Initial prices: | $29.99 for Altria, $48.86 for Barrick, $39.92 for CenturyLink, $11.19 for Kinross, $130.01 for Lorillard, $78.02 for Mead Johnson, $41.75 for PG&E, $78.21 for Time Warner, $38.14 for Verizon and $33.86 for Walgreen
|
| Pricing date: | Feb. 24
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| Settlement date: | Feb. 29
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| Agent: | J.P. Morgan Securities LLC
|
| Fees: | 6.25%, 3.865% for selling concessions
|
| Cusip: | 48125VME7
|
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