By Marisa Wong
Madison, Wis., May 27 – JPMorgan Chase & Co. priced $5.83 million of contingent income autocallable securities due May 25, 2018 linked to Facebook, Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.
If Facebook stock closes at or above the downside threshold level of $64.432 on a quarterly determination date, the notes will pay a contingent payment of 2.1375% for that quarter.
If Facebook stock closes at or above its initial price on any of the quarterly determination dates, other than the final date, the notes will be redeemed at par plus the contingent payment.
If the Facebook stock finishes at or above the downside threshold level, the payout at maturity will be par plus the contingent quarterly payment.
If the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will lose 1% for every 1% that the final share price is less than the initial share price or, at the issuer’s option, receive a number of Facebook shares equal to $10 divided by the initial share price.
J.P. Morgan Securities LLC is the agent. Morgan Stanley Smith Barney LLC will handle distribution.
| Issuer: | JPMorgan Chase & Co.
|
| Issue: | Contingent income autocallable securities
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| Underlying stock: | Facebook, Inc. (Nasdaq: FB)
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| Amount: | $5,832,650
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| Maturity: | May 25, 2018
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| Contingent payment: | 2.1375% for each quarter that Facebook stock closes at or above downside threshold level on determination date for that quarter
|
| Price: | Par of $10
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| Payout at maturity: | Par plus contingent coupon if Facebook stock finishes at or above downside threshold; otherwise 1% loss for every 1% that the final share price is less than the initial share price or, at the issuer’s option, 0.12416 Facebook shares
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| Call: | At par plus contingent payment if Facebook stock closes at or above initial share price on any quarterly determination date other than final date
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| Initial share price: | $80.54
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| Downside threshold: | $64.432, 80% of initial price
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| Pricing date: | May 22
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| Settlement date: | May 28
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| Agents: | J.P. Morgan Securities LLC
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| Fees: | 2.5%
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| Cusip: | 48127X823
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