By Marisa Wong
Madison, Wis., Dec. 2 – JPMorgan Chase & Co. priced $4.5 million of airbag phoenix autocallable optimization securities due Nov. 30, 2016 linked to Rock-Tenn Co. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 7% if Rock-Tenn shares close at or above the coupon barrier, 75% of the initial share price, on the observation date for that month.
The notes will be called at par plus the coupon if the stock closes at or above the initial share price on any quarterly observation date.
If the notes are not called, the payout at maturity will be par unless the final share price is less than the conversion price, in which case the payout will be a number of Rock-Tenn shares equal to $1,000 divided by the conversion price. The conversion price is 90% of the initial share price.
UBS Financial Services Inc. and J.P. Morgan Securities LLC are the agents.
| Issuer: | JPMorgan Chase & Co.
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| Issue: | Airbag phoenix autocallable optimization securities
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| Underlying stock: | Rock-Tenn Co. (Symbol: RKT)
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| Amount: | $4.5 million
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| Maturity: | Nov. 30, 2016
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| Coupon: | 7% annualized, payable monthly if Rock-Tenn shares close at or above coupon barrier on observation date for the month
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| Price: | Par
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| Payout at maturity: | If final share price is less than conversion price, number of Rock-Tenn shares equal to $1,000 divided by the conversion price; otherwise, par
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| Call: | At par if Rock-Tenn shares close at or above the initial share price on any quarterly observation date
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| Initial share price: | $55.87
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| Coupon barrier level: | $41.90, 75% of initial price
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| Conversion price: | $50.28, 90% of initial price
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| Pricing date: | Nov. 24
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| Settlement date: | Nov. 28
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| Agents: | UBS Financial Services Inc. and J.P. Morgan Securities LLC
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| Fees: | 1.5%
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| Cusip: | 48127P655
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