By Marisa Wong
Madison, Wis., June 10 – JPMorgan Chase & Co. priced $2.32 million of airbag phoenix autocallable optimization securities due Dec. 11, 2015 linked to the common stock of salesforce.com, inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay a contingent coupon at the rate of 9.6% per year if salesforce.com shares close at or above the coupon barrier, 75% of the initial share price, on the observation date for that month.
The notes will be automatically called at par if salesforce.com shares close at or above the initial share price on any autocall observation date, which occur quarterly.
If the notes are not called and the final price of salesforce.com shares is greater than or equal to the conversion price, 80% of the initial share price, the payout at maturity will be par. Otherwise, investors will receive a number of salesforce.com shares equal to $1,000 divided by the conversion price.
UBS Financial Services Inc. and J.P. Morgan Securities LLC are the agents.
| Issuer: | JPMorgan Chase & Co.
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| Issue: | Airbag phoenix autocallable optimization securities
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| Underlying stock: | salesforce.com, inc. (Symbol: CRM)
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| Amount: | $2.32 million
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| Maturity: | Dec. 11, 2015
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| Coupon: | 9.6%, payable monthly if stock closes at or above barrier price on observation date for that month
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| Price: | Par of $1,000
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| Payout at maturity: | If final price of salesforce.com shares is greater than or equal to conversion price, par; otherwise, investors will receive a number of salesforce.com shares equal to $1,000 divided by the conversion price
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| Call: | Automatically at par if salesforce.com shares close at or above initial share price on any autocall observation date, which occur quarterly
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| Initial share price: | $51.80
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| Barrier price: | $38.85, 75% of initial price
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| Conversion price: | $41.44, 80% of initial price
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| Pricing date: | June 6
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| Settlement date: | June 11
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| Underwriters: | UBS Financial Services Inc. and J.P. Morgan Securities LLC
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| Fees: | 1.5%
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| Cusip: | 48127F186
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