JPMorgan to price digital contingent coupon CDs linked to 10 stocks

By Angela McDaniels

Tacoma, Wash., Dec. 11 – JPMorgan Chase Bank, NA plans to price digital contingent coupon certificates of deposit due Dec. 31, 2024 linked to a basket of stocks, according to a term sheet.

The equally weighted basket includes the common stocks of Altria Group, Inc., Apple Inc., AT&T Inc., Chevron Corp., Cisco Systems, Inc., Exxon Mobil Corp., Ford Motor Co., International Business Machines Corp., Merck & Co., Inc. and Verizon Communications Inc.

Interest is payable annually and will equal the sum of the weighted performances of the basket stocks, subject to a minimum interest rate that is expected to be at least 1% per year.

If a stock’s return is greater than or equal to zero, its performance will be equal to the coupon cap, which is expected to be at least 6.15% per year. Otherwise, its performance will be equal to the greater of its return and negative 15%.

The exact minimum interest rate and coupon cap will be set at pricing.

The payout at maturity will be par plus the final coupon.

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

The CDs are expected to price Dec. 21.

The Cusip number is 48126YTB9.

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