JPMorgan plans callable interest rate spread notes linked to CMS rates

By Susanna Moon

Chicago, July 8 – JPMorgan Chase & Co. plans to price callable interest rate spread notes due July 30, 2029 linked to the 10-year U.S. dollar Constant Maturity Swap rate and the two-year CMS rate, according to a 424B2 filing with the Securities and Exchange Commission.

Interest will be fixed at 7% for the first year. After that, it will accrue at 4 times the spread of the 10-year CMS rate over the two-year CMS rate, up to a maximum rate of 7%. Interest is payable at maturity and cannot be less than zero.

The payout at maturity will be par plus the interest payment.

The notes are callable on any quarterly call date beginning July 30, 2015.

J.P. Morgan Securities LLC is the agent.

The notes will price on July 25 and settle on July 30.

The Cusip number is 48126N7D3.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.