JPMorgan plans 8%-10% callable reverse exchangeables tied to Facebook

By Susanna Moon

Chicago, April 12 – JPMorgan Chase & Co. plans to price 8% to 10% callable reverse exchangeable notes due July 31, 2017 linked to the class common stock of Facebook, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly, with the exact rate to be set at pricing.

The notes are callable at par plus accrued interest on any quarterly call date.

The payout at maturity will be par unless Facebook shares ever close below the trigger level, 65% of the initial level, during the life of the notes and finish below the initial level, in which case investors will receive 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 April 22 and settle on April 27.

The Cusip number is 46625HRB8.

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