JPMorgan plans autocallable contingent interest notes tied to Facebook

By Toni Weeks

San Luis Obispo, Calif., May 13 – JPMorgan Chase & Co. plans to price autocallable contingent interest notes due Aug. 25, 2016 linked to the common stock of Facebook, Inc., according to an FWP filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon at an annual rate of 7% to 9% if Facebook shares close at or above the trigger level, 70% of the initial share price, on the review date for that quarter. The exact coupon will be set at pricing.

Beginning Nov. 23, the notes will be automatically called at par plus the contingent coupon if Facebook shares close at or above the initial share price on any review date other than the final review date.

A trigger event occurs if the stock closes below the 70% trigger level on any day during the life of the notes.

If the notes are not called, the stock return is zero or positive and a trigger event has not occurred, the payout at maturity will be par plus the final coupon. If the final share price is less than the trigger price and a trigger event has occurred, investors will receive a number of Facebook shares equal to $1,000 divided by the initial stock price or, at the issuer’s option, the cash value of those shares.

The notes (Cusip: 46625HLC2) are expected to price May 22 and settle May 28.

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.