JPMorgan plans contingent income autocallables linked to Blackstone

By Marisa Wong

Madison, Wis., April 24 – JPMorgan Chase & Co. plans to price contingent income autocallable securities due May 4, 2018 linked to Blackstone Group LP units, according to an FWP with the Securities and Exchange Commission.

Each quarter, holders will receive a contingent payment of at least 2.15% if Blackstone units close at or above the downside threshold level, 80% of the initial unit price, on the determination date for that quarter.

The notes will be called at par of $10 plus the contingent coupon if Blackstone units close at or above the initial unit price on any quarterly determination date other than the final one.

If the final unit price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will lose 1% for every 1% that the final unit price is less than the initial unit price or, at the issuer’s option, receive a number of Blackstone units equal to $10 divided by the initial unit price.

J.P. Morgan Securities LLC is the agent. Distribution is through Morgan Stanley Smith Barney LLC.

The notes will price on May 1.

The Cusip number is 48127T293.

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