By Toni Weeks
San Luis Obispo, Calif., June 4 - JPMorgan Chase & Co. priced $3.64 million of contingent income autocallable securities with step-up redemption threshold level feature due June 2, 2017 linked to Apple Inc. shares, according to an FWP filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at a rate of 8.25% per year if Apple stock closes at or above the 80% downside threshold level on the determination date for that quarter.
If the shares close at or above the applicable redemption threshold level on any quarterly determination date other than the final date, the notes will be called at par plus the contingent coupon. The redemption threshold levels are 105% of the initial stock price on the first four determination dates, 110% of the initial stock price on the next four determination dates and 115% of the initial stock price on the final three determination dates.
If the notes are not called and Apple stock finishes at or above the 80% trigger level, the payout at maturity will be par plus the contingent payment.
Otherwise, investors will receive a number of shares of Apple stock equal to $10 divided by the initial share price or, at the issuer's option, the cash value of those shares.
J.P. Morgan Securities LLC is the agent with Morgan Stanley Smith Barney LLC as dealer.
| Issuer: | JPMorgan Chase & Co.
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Apple Inc. (Symbol: AAPL)
|
| Amount: | $3,643,300
|
| Maturity: | June 2, 2017
|
| Contingent coupon: | 2.0625% per quarter, payable if Apple stock closes at or above downside threshold level on determination date for that quarter
|
| Price: | Par of $10.00
|
| Payout at maturity: | If stock finishes at or above downside threshold level, par plus contingent payment; otherwise, 0.0158 Apple shares
|
| Call: | At par plus contingent payment if stock closes at or above applicable redemption threshold level on any quarterly determination date other than final one
|
| Initial share price: | $633.00
|
| Downside threshold level: | $506.40, 80% of initial share price
|
| Redemption thresholds: | $664.65 (105% of initial price) on first four determination dates; $696.30 (110% of initial price) on next four determination dates; $727.95 (115% of initial price) on final three determination dates
|
| Pricing date: | May 30
|
| Settlement date: | June 4
|
| Agent: | J.P. Morgan Securities LLC with Morgan Stanley Smith Barney LLC handling distribution
|
| Fees: | 2.25%
|
| Cusip: | 48127F285
|
© 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.
