JPMorgan plans digital contingent coupon CDs due 2018 on stock basket

By Marisa Wong

Madison, Wis., Feb. 2 - JPMorgan Chase Bank, NA plans to price digital contingent coupon certificates of deposit due Feb. 27, 2018 linked to an equally weighted basket of stocks, according to a term sheet.

The basket includes the common stocks of Altria Group, Inc., Amazon.com, Inc., AT&T Inc., Bristol-Myers Squibb Co., General Mills, Inc., Intel Corp., Newmont Mining Corp., Time Warner Cable Inc., Wells Fargo & Co. and Whole Foods Market, Inc.

Interest is payable in February of each year and will equal the sum of the weighted performances of the basket stocks, subject to a floor of zero.

If a stock's return is positive or flat, its performance will equal a coupon cap of at least 10%. Otherwise, its performance will be the greater of its return and negative 25%. The exact coupon cap will be set at pricing.

The payout at maturity will be par.

The CDs (Cusip: 48123YTR7) are expected to price Feb. 23 and settle Feb. 28.

J.P. Morgan Securities LLC is the agent. Incapital LLC is the distributor.

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