By Angela McDaniels
Tacoma, Wash., May 31 - JPMorgan Chase & Co. priced $1 million of autocallable contingent interest notes due June 18, 2014 linked to the common stock of PulteGroup, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
If PulteGroup shares close at or above the barrier level, 70% of the initial share price, on a quarterly review date, the notes will pay a 4.45% coupon that interest period, which is equivalent to 17.8% per year. If PulteGroup shares close below the barrier level, no coupon will be paid that interest period.
The notes will be called automatically at par plus the 4.45% contingent coupon if PulteGroup shares close at or above the initial share price on Sept. 12, 2013, Dec. 12, 2013 or March 13, 2014.
If the notes have not been called and the final share price is greater than or equal to the barrier level, the payout at maturity will be par plus the 4.45% contingent coupon. If the final share price is less than the barrier level, investors will be exposed to the decline from the initial share price.
J.P. Morgan Securities LLC is the agent.
| Issuer: | JPMorgan Chase & Co.
|
| Issue: | Autocallable contingent interest notes
|
| Underlying stock: | PulteGroup, Inc. (Nasdaq: PHM)
|
| Amount: | $1 million
|
| Maturity: | June 18, 2014
|
| Coupon: | 4.45% (equivalent to 17.8% per year) payable for each quarter that PulteGroup stock closes at or above barrier price on review date for that interest period
|
| Price: | Par
|
| Payout at maturity: | Par plus contingent coupon unless PulteGroup shares finish below barrier price, in which case investors share fully in losses
|
| Call: | Automatically at par plus contingent coupon if PulteGroup shares close at or above initial share price on Sept. 12, 2013, Dec. 12, 2013 or March 13, 2014
|
| Initial share price: | $22.05
|
| Barrier price: | $15.435, 70% of initial share price
|
| Pricing date: | May 29
|
| Settlement date: | June 3
|
| Agent: | J.P. Morgan Securities LLC
|
| Fees: | 1%
|
| Cusip: | 48126NCL9
|
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