JPMorgan plans five-year digital contingent coupon CDs tied to stocks

By Angela McDaniels

Tacoma, Wash., March 2 - JPMorgan Chase Bank, NA plans to price digital contingent coupon certificates of deposit due March 30, 2016 linked to an equally weighted basket of stocks, according to a term sheet.

The basket includes the common stocks of Amazon.com, Inc., Clorox Co., ConocoPhillips, Campbell Soup Co., Kraft Foods Inc., Lowe's Cos., Inc., Merck & Co., Inc., Newmont Mining Corp., Time Warner Cable Inc. and Verizon Communications Inc.

Interest is payable in March of each year and will equal the sum of the weighted performances of the basket stocks, subject to a floor of zero.

If a stock's return is positive or flat, its performance will be a fixed percentage equal to at least 7%. Otherwise, its performance will be the greater of its return and negative 25%. The exact fixed percentage will be set at pricing.

The payout at maturity will be par.

The CDs (Cusip: 48123YUS3) are expected to price March 28 and settle March 31.

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

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