JPMorgan plans callable interest rate spread CDs linked to CMS rates

By Toni Weeks

San Luis Obispo, Calif., Jan. 29 - JPMorgan Chase Bank, NA plans to price callable interest rate spread certificates of deposit due Feb. 12, 2029 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 20 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 Feb. 12, 2015, the CDs will be callable at par on any interest payment date.

J.P. Morgan Securities LLC is the agent. Incapital LLC is the distributor.

The CDs are expected to price Feb. 7 and settle Feb. 12.

The fees are expected to be 4% to 5%.

The Cusip number is 48125TEF8.

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