JPMorgan plans contingent income notes linked to Amazon, Facebook

By Angela McDaniels

Tacoma, Wash., Nov. 13 – JPMorgan Chase Financial Co. LLC plans to price contingent income autocallable securities due May 22, 2019 linked to the lesser performing of the common stock of Amazon.com, Inc. and the class A 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 each stock closes at or above its downside threshold level, 70% of its initial share price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of at least 10.75%. The exact rate will be set at pricing.

The notes will be called at par of $10 plus the contingent coupon if each stock closes at or above its initial share price on any quarterly determination date other than the final determination date.

If each stock’s final share price is greater than or equal to its downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will lose 1% for every 1% that the lesser-performing stock declines from its initial share price.

J.P. Morgan Securities LLC is the agent. Morgan Stanley Smith Barney LLC is handling distribution.

The notes are expected to price Nov. 17.

The Cusip number is 48129K845.

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