JPMorgan plans autocallable reverse exchangeables linked to Facebook

By Angela McDaniels

Tacoma, Wash., Dec. 16 – JPMorgan Chase & Co. plans to price autocallable reverse exchangeable notes due Dec. 30, 2016 linked to the class A common stock of Facebook, Inc., according to an FWP filing with the Securities and Exchange Commission.

The coupon is expected to be 8.25% to 10.25% per year and will be set at pricing. Interest will be payable monthly.

The notes will be automatically called at par if Facebook stock closes at or above the initial share price on June 23, 2016 or Sept. 23, 2016.

If the notes are not called, the payout at maturity will be par unless Facebook stock closes below the trigger level, 65% of the initial share price, during the life of the notes and finishes below the initial price, 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 Dec. 23.

The Cusip number is 46625HPU8.

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