JPMorgan plans 8%-10% autocallable reverse exchangeables on Facebook

By Wendy Van Sickle

Columbus, Ohio, Dec. 29 – JPMorgan Chase & Co. plans to price 8% to 10% autocallable reverse exchangeable notes due Jan. 23, 2017 linked to the common stock of Facebook, Inc., according to a 424B2 filed 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 July 15, 2016 or Oct. 17, 2016.

The payout at maturity will be par unless the stock falls and ever closes below the trigger level, 67.5% of the initial level, 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, the cash equivalent.

J.P. Morgan Securities LLC is the agent.

The notes will price on Jan. 15 and settle on Jan. 21.

The Cusip number is 48128AAC7.

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