JPMorgan plans contingent absolute return autocallables tied to Cummins

By Angela McDaniels

Tacoma, Wash., Sept. 4 - JPMorgan Chase & Co. plans to price 0% contingent absolute return autocallable optimization securities due Sept. 12, 2014 linked to the common stock of Cummins Inc., according to an FWP filing with the Securities and Exchange Commission.

The notes will be called at par plus an annualized call premium of 8% to 10% if Cummins stock closes at or above the initial share price on any quarterly observation date. The exact call premium will be set at pricing.

If the notes are not called and the final share price is greater than or equal to the trigger price, 75% of the initial share price, the payout at maturity will be par plus the absolute value of the stock return. Otherwise, investors will be fully exposed to the stock decline.

UBS Financial Services Inc. and J.P. Morgan Securities LLC are the agents.

The notes are expected to price Sept. 6 and settle Sept. 11.

The Cusip number is 48126H480.

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