JPMorgan plans autocallable contingent interest notes tied to Apple

By Marisa Wong

Madison, Wis., June 4 – JPMorgan Chase & Co. plans to price autocallable contingent interest notes due Sept. 22, 2016 linked to the common stock of Apple Inc., according to an FWP filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon at an annual rate of 7.5% to 9.5% if Apple shares close at or above the trigger level, 75% of the initial share price, on the review date for that quarter. The exact coupon will be set at pricing.

The notes will be automatically called at par plus the contingent coupon if Apple shares close at or above the initial share price on any review date other than the final review date.

A trigger event occurs if the stock closes below the 75% trigger level on any day during the life of the notes.

If the notes are not called and the stock return is zero or positive or a trigger event has not occurred, the payout at maturity will be par plus the final coupon. If the final share price is less than the trigger price and a trigger event has occurred, investors will receive a number of Apple shares equal to $1,000 divided by the initial stock price or, at the issuer’s option, the cash value of those shares.

J.P. Morgan Securities LLC is the agent.

The notes will price June 19 and settle June 24.

The Cusip number is 46625HLQ1.

© 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.