JPMorgan plans autocallable reverse exchangeables tied to three stocks

By Angela McDaniels

Tacoma, Wash., Sept. 10 – JPMorgan Chase & Co. plans to price autocallable reverse exchangeable notes due March 20, 2017 linked to the least performing of the common stock of FedEx Corp., the common stock of Union Pacific Corp. and the class B common stock of United Parcel Service, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The interest rate will be at least 10% per year. The exact interest rate will be set at pricing. Interest will be payable monthly.

The notes will be called at par if each stock closes at or above its initial share price on Dec. 15, 2015, March 15, 2016, June 15, 2016, Sept. 15, 2016 or Dec. 15, 2016.

If the notes are not called, the payout at maturity will be par unless the final share price of any stock is less than its trigger value, 70% of its initial share price, in which case the payout will be a number of shares of the least-performing stock equal to $1,000 divided by its 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 Sept. 15 and settle Sept. 18.

The Cusip number is 46625HNF3.

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