JPMorgan plans digital contingent coupon CDs linked to 10 stocks

By Angela McDaniels

Tacoma, Wash., Aug. 1 - JPMorgan Chase Bank, NA plans to price digital contingent coupon certificates of deposit due Aug. 31, 2018 linked to an equally weighted basket of stocks, according to a term sheet.

The basket includes the common stocks of Altria Group, Inc., Amazon.com, Inc., AT&T Inc., Barrick Gold Corp., Bristol-Myers Squibb Co., General Mills, Inc., Intel Corp., Time Warner Cable Inc., Wells Fargo & Co. and Whole Foods Market, Inc.

Interest is payable in August 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 equal to the coupon cap. Otherwise, its performance will be the greater of its return and negative 30%. The coupon cap is expected to be 9% to 11% and will be set at pricing.

The payout at maturity will be par.

The CDs (Cusip: 48123YL53) are expected to price Aug. 26 and settle Aug. 31.

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

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