Published on 5/7/2013 in the Prospect News Structured Products Daily.
New Issue: JPMorgan prices $8.19 million autocallable contingent interest notes linked to Ford
By Angela McDaniels
Tacoma, Wash., May 7 - JPMorgan Chase & Co. priced $8.19 million of autocallable contingent interest notes due May 21, 2014 linked to the common stock of Ford Motor Co., according to a 424B2 filing with the Securities and Exchange Commission.
If Ford shares close at or above the barrier level, 80% of the initial share price, on a quarterly review date, the notes will pay a 3.325% coupon that interest period, which is equivalent to 13.3% per year. If Ford shares close below the barrier level, no coupon will be paid that interest period.
The notes will be automatically called at par plus the 3.325% contingent coupon if Ford shares close at or above the initial share price on Aug. 15, 2013, Nov. 14, 2013, Feb. 13, 2014 or May 16, 2014.
If the notes have not been called and the final share price is greater than or equal to the barrier level, the payout at maturity will be par plus the 3.325% contingent coupon. If the final share price is less than the barrier level, investors will be exposed to the decline from the initial share price.
J.P. Morgan Securities LLC is the agent.
| Issuer: | JPMorgan Chase & Co.
|
| Issue: | Autocallable contingent interest notes
|
| Underlying stock: | Ford Motor Co. (NYSE: F)
|
| Amount: | $8,185,000
|
| Maturity: | May 21, 2014
|
| Coupon: | 3.325% (equivalent to 13.3% per year), payable quarterly if Ford stock closes at or above barrier price on review date for that interest period; otherwise, no coupon will be paid for that interest period
|
| Price: | Par
|
| Payout at maturity: | Par plus contingent coupon unless Ford shares finish below barrier price, in which case investors share fully in losses
|
| Call: | Automatically at par plus contingent coupon if Ford shares close at or above initial share price on Aug. 15, 2013, Nov. 14, 2013, Feb. 13, 2014 or May 16, 2014
|
| Initial share price: | $13.83
|
| Barrier price: | $11.064, 80% of initial share price
|
| Pricing date: | May 3
|
| Settlement date: | May 8
|
| Agent: | J.P. Morgan Securities LLC
|
| Fees: | 1%
|
| Cusip: | 48126D3Q0
|
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