JPMorgan plans contingent income autocallables tied to American Air

By Susanna Moon

Chicago, March 20 – JPMorgan Chase & Co. plans to price contingent income autocallable securities due April 2, 2018 linked to American Airlines Group, Inc. shares, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of at least 14.4% if the shares close at or above the 70% barrier level on the observation date for that quarter.

The notes will be called at par plus the contingent coupon if the stock closes at or above the 90% redemption level on any determination date other than the final date.

The payout at maturity will be par plus the final coupon unless the shares finish below the 70% barrier level, in which case investors will receive a number of American Airlines shares equal to $10 divided by the initial price or, at the issuer’s option, the cash equivalent.

J.P. Morgan Securities LLC is the agent with Morgan Stanley Wealth Management handling distribution.

The notes will price on March 27.

The Cusip number is 48127T723.

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