JPMorgan to price digital contingent coupon CDs linked to 10 stocks

By Angela McDaniels

Tacoma, Wash., March 5 - JPMorgan Chase Bank, NA plans to price digital contingent coupon certificates of deposit due March 31, 2021 linked to a basket of common stocks, according to a term sheet.

The equally weighted basket includes the common stocks of Altria Group, Inc., Bristol-Myers Squibb Co., Coca-Cola Co., Kimberly-Clark Corp., McDonald's Corp., Philip Morris International Inc., Potash Corp. of Saskatchewan Inc., Procter & Gamble Co., Starbucks Corp. and Southern Co.

Interest is payable annually and will equal the sum of the weighted performances of the basket stocks, subject to a minimum coupon of zero.

If a stock's return is greater than or equal to zero, its performance will be equal to the coupon cap. Otherwise, its performance will be equal to the greater of its return and negative 10%. The coupon cap is expected to be at least 7.25% and will be set at pricing.

The payout at maturity will be par.

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

The CDs are expected to price March 26 and settle March 31.

The fees are expected to be 4.5% to 4.75%.

The Cusip number is 48125TJH9.

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