JPMorgan plans callable interest rate spread CDs linked to CMS rates

By Angela McDaniels

Tacoma, Wash., Dec. 6 - JPMorgan Chase Bank, NA plans to price callable interest rate spread certificates of deposit due Dec. 20, 2028 linked to the 30-year Constant Maturity Swap Rate and the five-year Constant Maturity Swap Rate, according to a term sheet.

The interest rate will be 10% for the first year. After that, it will be (a) four times (b) the 30-year CMS rate minus the five-year CMS rate minus 35 basis points, subject to a minimum interest rate of zero and a maximum interest rate of 10% per year. Interest will be payable quarterly.

The payout at maturity will be par.

Beginning Dec. 20, 2014, the CDs will be callable at par on any interest payment date.

J.P. Morgan Securities LLC is the agent. Advisors Asset Management, Inc. and Incapital LLC are distributors.

The CDs are expected to price Dec. 17 and settle Dec. 20.

The fees are expected to be 3.8% to 5%.

The Cusip number is 48125TBD6.

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