JPMorgan to price callable reverse exchangeables linked to Facebook

By Angela McDaniels

Tacoma, Wash., May 6 – JPMorgan Chase & Co. plans to price callable reverse exchangeable notes due May 24, 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 7% to 9% per year and will be set at pricing. Interest will be payable monthly.

The notes are callable at par on Nov. 25, 2016 or Feb. 27, 2017.

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, 70% 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 May 17.

The Cusip number is 46625HRJ1.

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