JPMorgan to price digital contingent coupon CDs linked to 10 stocks

By Angela McDaniels

Tacoma, Wash., Sept. 11 – JPMorgan Chase Bank, NA plans to price digital contingent coupon certificates of deposit due Sept. 30, 2022 linked to a basket of stocks, according to a term sheet.

The equally weighted basket includes AT&T Inc., CenturyLink, Inc., Exelon Corp., General Motors Co., HCP, Inc., Kinder Morgan, Inc., Murphy Oil Corp., Philip Morris International Inc., Potash Corp. of Saskatchewan Inc. and PPL Corp.

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 1.15% per year.

If a stock's return is greater than or equal to zero, its performance will be equal to the coupon cap. Otherwise, its performance will be equal to the greater of its return and negative 10%. The coupon cap is expected to be between 5% and 5.5%.

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

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

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

The CDs will price Sept. 25 and settle Sept. 30.

The Cusip number is 48125YPY4.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.