JPMorgan plans 7%-9% autocallable reverse exchangeables on Facebook

By Toni Weeks

San Luis Obispo, Calif., April 6 – JPMorgan Chase & Co. plans to price 7% to 9% autocallable reverse exchangeable notes due July 20, 2016 linked to Facebook, Inc. shares, according to an FWP with the Securities and Exchange Commission.

Interest is payable monthly. The exact rate will be set at pricing.

The notes will be called at par if Facebook stock closes at or above the initial share price on Oct. 15, 2015, Jan. 15, 2016 or April 15, 2016.

A trigger event occurs if the stock closes below the trigger price, 72.5% of the initial price, on any day during the life of the notes.

If the notes are not called and (i) the final price is greater than or equal to the initial price or (ii) a trigger event has not occurred, the payout at maturity will be par plus the final coupon. If the final price is less than the initial price and a trigger event has occurred, the payout will be a number of Facebook shares equal to $1,000 divided by the initial share price.

The notes (Cusip: 48125UMS8) are expected to price April 15 and settle April 20.

J.P. Morgan Securities LLC is the agent.

© 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.