JPMorgan plans autocallable reverse exchangeables linked to Facebook

By Angela McDaniels

Tacoma, Wash., Jan. 26 – JPMorgan Chase & Co. plans to price autocallable reverse exchangeable notes due Feb. 21, 2017 linked to the class A common stock of Facebook Inc., according to a 424B2 filing with the Securities and Exchange Commission.

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

The notes will be called at par if Facebook stock closes at or above the initial share price on Aug. 12, 2016 or Nov. 14, 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, 65% 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 Feb. 12.

The Cusip number is 46625HQC7.

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