JPMorgan plans callable contingent interest notes due 2021 on ETFs

By Sarah Lizee

Olympia, Wash., Oct. 17 – JPMorgan Chase Financial Co. LLC plans to price callable contingent interest notes due Oct. 26, 2021 linked to the lesser performing of the Financial Select Sector SPDR Fund and the SPDR S&P Oil & Gas Exploration & Production ETF, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be guaranteed by JPMorgan Chase & Co.

Each quarter, the notes will pay a contingent coupon at an annual rate of at least 11.85% if each fund closes at or above its coupon barrier level, 70 % of its initial level, on the review date for that period.

The notes will be callable at par plus the contingent coupon if each fund closes at or above its initial level on any quarterly review date other than the first and final dates.

If the notes have not been called, the payout at maturity will be par plus the final coupon if both funds close above their trigger value, 70% of their respective initial levels.

Otherwise investors will lose 1% for each 1% decline of the lesser-performing fund.

J.P. Morgan Securities LLC is the agent.

The notes will price on Oct. 19 and settle on Oct. 26.

The Cusip number is 48130UF91.

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