JPMorgan eyes autocallable contingent interest notes tied to Facebook

By Devika Patel

Knoxville, Tenn., April 3 – JPMorgan Chase Financial Co. LLC plans to price autocallable contingent interest notes due April 24, 2019 linked to Facebook, Inc. class A common shares, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be guaranteed by JPMorgan Chase & Co.

The notes will pay a contingent quarterly coupon at an annual rate of at least 10% if the stock closes at or above the 64% coupon barrier level on the determination date for that quarter. The exact coupon will be set at pricing. If a coupon payment is skipped it will be paid at a later date if future coupon payments are made.

The notes will be called at par plus the contingent coupon if the stock closes at or above the initial level on any quarterly call review date other than the final one beginning on July 19, 2018.

The payout at maturity will be par plus the final coupon along with any skipped interest payments unless the stock finishes below the 64% trigger level, in which case investors will lose 1% for each 1% decline of the stock from its initial level.

J.P. Morgan Securities LLC is the agent.

The notes (Cusip: 48129MLG9) will price on April 6 and settle April 11.

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