Published on 8/28/2014 in the Prospect News Structured Products Daily.
New Issue: JPMorgan prices $744,000 contingent interest autocallables linked to three stocks
By Toni Weeks
San Luis Obispo, Calif., Aug. 28 – JPMorgan Chase & Co. priced $744,000 of autocallable contingent interest notes due Aug. 29, 2019 linked to the least performing of the common stocks of Apple Inc., Facebook, Inc. and Google Inc., according to a 424B2 filing with the Securities and Exchange Commission.
If each stock closes at or above the interest barrier level, 60% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment of $25.00 per $1,000 note for that quarter. The payment is equivalent to 10% per year.
If the closing share price of each stock is greater than or equal to its initial share price on any quarterly review date other than the final date, the notes will be automatically called at par plus the contingent payment.
If the notes are not called and the final share price of each stock is greater than or equal to the 60% trigger level, the payout at maturity will be par plus the contingent interest payment. If the final share price of any stock is less than the trigger price, investors will receive a number of shares of the least-performing stock equal to $1,000 divided by that stock’s initial share price or, at the issuer’s option, the cash value of those shares.
J.P. Morgan Securities LLC is the agent.
| Issuer: | JPMorgan Chase & Co.
|
| Issue: | Autocallable contingent interest notes
|
| Underlying stocks: | Apple Inc. (Symbol: AAPL), Facebook, Inc. (Symbol: FB), Google Inc. (Symbol: GOOGL)
|
| Amount: | $744,000
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| Maturity: | Aug. 29, 2019
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| Coupon: | 2.5% (equivalent to 10% per year) payable quarterly if each stock closes at or above interest barrier on review date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par plus contingent coupon unless any stock finishes below trigger price, in which case a number of shares of the least-performing stock equal to $1,000 divided by initial price of that stock (9.91179 Apple shares, 13.16309 Facebook shares or 1.70033 Google shares)
|
| Call: | Automatically at par plus contingent coupon if closing price of each stock is greater than or equal to its initial share price on any quarterly review date other than final date
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| Initial share prices: | $100.89 for Apple, $75.97 for Facebook, $588.12 for Google
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| Interest barriers/trigger: | $60.534 for Apple, $45.582 for Facebook, $352.872 for Google, 60% of initial prices
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| Pricing date: | Aug. 26
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| Settlement date: | Aug. 29
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| Agent: | J.P. Morgan Securities LLC
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| Fees: | 3.41801%
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| Cusip: | 48127DWQ7
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