JPMorgan to price autocallable reverse exchangeables tied to Facebook

By Marisa Wong

Morgantown, W.Va., Oct. 23 – JPMorgan Chase & Co. plans to price 7.5% to 9.5% autocallable reverse exchangeable notes due Nov. 15, 2016 linked to the common stock of Facebook, Inc., according to a 424B2 filing 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 May 9, 2016 or Aug. 9, 2016.

If the notes are not called, the payout at maturity will be par unless the final share price is less than the initial share price and the stock closes below the trigger price, 70% of the initial share price, on any day during the life of the notes, in which case the payout will be a number of Facebook shares equal to $1,000 divided by the initial share price or, at the issuer’s option, an amount in cash equal to the value of those shares.

J.P. Morgan Securities LLC is the agent.

The notes will price on Nov. 9 and settle on Nov. 13.

The Cusip number is 46625HNZ9.

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