JPMorgan to price contingent coupon CDs linked to basket of stocks

By Angela McDaniels

Tacoma, Wash., March 29 - JPMorgan Chase Bank, NA plans to price contingent coupon certificates of deposit due April 26, 2016 linked to a basket of stocks, according to a term sheet.

The equally weighted basket includes the common stocks of Abbott Laboratories, Altria Group, Inc., Amazon.com, Inc., Campbell Soup Co., Dow Chemical Co., Goldcorp Inc., Qualcomm Inc., Verizon Communications Inc. and Wells Fargo & Co. and the class B common stock of Berkshire Hathaway Inc.

The CDs will pay interest in April of each year. The coupon will be the sum of the weighted returns of the basket stocks, subject to a floor of at least 1%. The return of each basket stock will be subject to a cap of at least 8% in each interest period. The exact floor and cap will be set at pricing.

The payout at maturity will be par.

The CDs are expected to price April 27 and settle April 30.

J.P. Morgan Securities Inc. is the agent. Incapital LLC is the distributor.

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