By Marisa Wong
Morgantown, W.Va., Aug. 4 – JPMorgan Chase Financial Co. LLC priced $20.15 million of contingent income callable securities due Aug. 2, 2018 linked to an equally weighted basket of four stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by JPMorgan Chase & Co.
The basket consists of the common stocks of Bank of America Corp., Citigroup Inc., Capital One Financial Corp. and Regions Financial Corp.
Each quarter, the notes pay a contingent coupon of 2.25% if the basket closes at or above the 70% downside threshold level on each day during that quarter.
The notes are callable at par on any quarterly determination date other than the final one.
If the basket finishes at or above its downside threshold level, the payout at maturity will be par plus the final contingent coupon. If the final basket level is less than the downside threshold level, investors will be fully exposed to the basket decline.
J.P. Morgan Securities LLC is the agent. Distribution is through Morgan Stanley Wealth Management.
| Issuer: | JPMorgan Chase Financial Co. LLC
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| Guarantor: | JPMorgan Chase & Co.
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| Issue: | Contingent income callable securities
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| Underlying basket: | Bank of America Corp. (Symbol: BAC), Citigroup Inc. (Symbol: C), Capital One Financial Corp. (Symbol: COF), Regions Financial Corp. (Symbol: RF); equally weighted
|
| Amount: | $20,145,000
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| Maturity: | Aug. 2, 2018
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| Coupon: | 9% per year, payable quarterly if basket closes at or above downside threshold level on each day during that quarter
|
| Price: | Par
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| Payout at maturity: | If basket finishes at or above downside threshold level, par plus final contingent coupon; if basket finishes below downside threshold level, full exposure to decline
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| Call option: | At par on any quarterly determination date other than final one
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| Initial share prices: | $14.49 for BofA, $43.81 for Citi, $67.08 for Capital One and $9.17 for Regions
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| Downside threshold: | 70% of initial level
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| Pricing date: | July 29
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| Settlement date: | Aug. 3
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| Agent: | J.P. Morgan Securities LLC
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| Distribution: | Morgan Stanley Smith Barney LLC
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| Fees: | 2%
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| Cusip: | 46646EQV7
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