JPMorgan plans contingent interest autocallables on Facebook

By Wendy Van Sickle

Columbus, Ohio, Feb. 8 – JPMorgan Chase Financial Co. LLC plans to price autocallable contingent interest notes due May 15, 2018 linked to the common stock of Facebook, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be guaranteed by JPMorgan Chase & Co.

If Facebook stock closes at or above the trigger price – 70% of the initial share price – on a quarterly review date, the issuer will pay a contingent coupon for that quarter at the rate of at least 7.5%. Otherwise, no coupon will be paid that quarter.

If the shares close at or above the initial price on any quarterly review date other than the first and final dates, the notes will be called at par plus the contingent coupon.

If the notes have not been called and Facebook shares finish at or above the trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to the share price decline from the initial price.

J.P. Morgan Securities LLC is the underwriter.

The notes will price on Feb. 10.

The Cusip number is 46646QYU3.

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