JPMorgan plans contingent interest CDs on JPMorgan Efficiente Plus

By Angela McDaniels

Tacoma, Wash., March 6 – JPMorgan Chase Bank, NA plans to price certificates of deposit with contingent annual interest due March 31, 2022 linked to the J.P. Morgan Efficiente Plus DS 5 Index (Net ER), according to a term sheet.

If the index closes at or above the initial index level on any annual contingent interest review date, the CDs will pay a coupon that is expected to be at least 1.5% per year and will be set at pricing. The review dates fall in March of each year from 2016 through 2021 and do not include the maturity date.

The payout at maturity will be par plus the index return, subject to a minimum payout of par.

The index is a notional dynamic basket that tracks the excess return of a portfolio of 19 exchange-traded funds and one exchange-traded note, in each case with distributions notionally reinvested, and the JPMorgan Cash Index USD 3 Month over the return of the cash index less a fee of 0.85% per annum that accrues daily, while targeting a specific volatility on a daily basis.

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

The CDs will price March 26 and settle March 31.

The Cusip number is 48125T4C6.

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