JPMorgan plans contingent income autocallables linked to Under Armour

By Toni Weeks

San Luis Obispo, Calif., May 1 – JPMorgan Chase & Co. plans to price contingent income autocallable securities due May 12, 2016 linked to Under Armour, Inc. shares, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly payment of at least 2.25% if the stock closes at or above its 80% downside threshold level on the observation date for that quarter. The coupon is equivalent to 9% per year and will be set at pricing.

The notes will be redeemed at par of $10 plus the contingent payment if the stock closes at or above the initial level on any determination date other than the final date.

The payout at maturity will be par plus the final coupon unless the stock finishes below its 80% downside threshold level, in which case investors will receive par plus the stock return or, at the issuer’s option, a number of Under Armour shares equal to $10 divided by the initial share price.

J.P. Morgan Securities LLC is the agent. Morgan Stanley Wealth Management will handle distribution.

The notes (Cusip: 48127T160) will price May 8.

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