JPMorgan plans contingent interest notes on four insurance stocks

By Marisa Wong

Madison, Wis., Dec. 24 – JPMorgan Chase & Co. plans to price autocallable contingent interest accrual notes due Dec. 29, 2017 linked to the least performing of the common stocks of Aetna Inc., Cigna Corp., Hartford Financial Services Group, Inc. and MetLife, Inc., according to an FWP filing with the Securities and Exchange Commission.

The notes will accrue interest at a rate of at least 7.15% per year for each trading day that each stock is greater than or equal to its barrier price. The barrier price will be 63.5% of the initial price. The contingent interest is payable monthly. The exact rate will be set at pricing.

If each stock closes at or above its respective initial share price on any quarterly review date other than the final review date, the notes will be called at par plus any contingent interest.

If the notes have not been called and each stock finishes at or above its trigger price, the payout at maturity will be par plus the coupon. Otherwise, investors will be fully exposed to the share price decline of the least performing stock.

J.P. Morgan Securities LLC is the agent.

The notes will price on Dec. 26 and settle on Dec. 31.

The Cusip number is 48127D4K1.

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