JPMorgan to price callable contingent interest notes linked to Amazon

By Wendy Van Sickle

Columbus, Ohio, April 20 – JPMorgan Chase & Co. plans to price callable contingent interest notes due May 3, 2017 linked to the common stock of Amazon.com, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon if Amazon shares close at or above the trigger value, 69% of the initial share price, on the review date for that quarter. The contingent interest rate is expected to be 8% to 10% per year and will be set at pricing.

The notes will be callable at par plus the contingent coupon if the closing price of the stock is greater than or equal to its in initial price on any quarterly review date other than the first and final review date.

If the notes have not been called, the payout at maturity will be par unless the stock closes below the trigger value on any day during the life of the notes and finishes below its initial level, in which case the payout will be a number of Amazon shares equal to $1,000 divided by the initial share price.

J.P. Morgan Securities LLC is the agent.

The notes will price April 27.

The Cusip number is 46625HRG7.

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