New Issue: JPMorgan prices $1.15 million 8% callable reverse exchangeables tied to Facebook

By Susanna Moon

Chicago, April 27 – JPMorgan Chase & Co. priced $1.15 million of 8% callable reverse exchangeable notes due July 31, 2017 linked to class A common stock of Facebook, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

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

The payout at maturity will be par unless Facebook shares ever close below the trigger level, 65% of the initial share price, during the life of the notes and finish below the initial share price, 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.

Issuer:	JPMorgan Chase & Co.
Issue:	Callable reverse exchangeable notes
Underlying stock:	Facebook, Inc. (Symbol: FB)
Amount:	$1,152,000
Maturity:	July 31, 2017
Coupon:	8%, payable monthly
Price:	Par
Payout at maturity:	Par unless stock falls and closes below trigger level on any day during life of notes, in which case 9.0449 Facebook shares
Call option:	At par plus accrued interest on Oct. 31, 2016, Jan. 30, 2017 or May 1, 2017
Initial level:	$110.56
Trigger level:	$71.864, 65% of initial level
Pricing date:	April 22
Settlement date:	April 27
Agent:	J.P. Morgan Securities LLC
Fees:	1.65%
Cusip:	46625HRB8

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