JPMorgan plans variable-rate range accrual CDs on 6M Libor, Russell

By Jennifer Chiou

New York, Aug. 3 - JPMorgan Chase Bank, NA plans to price callable variable-rate range accrual certificates of deposit due Aug. 20, 2027 linked to six-month Libor and the Russell 2000 index, according to a term sheet.

The interest rate will be 6% for the first year. Beginning on Aug. 20, 2013, the interest rate will be equal to the interest factor multiplied by the proportion of days on which the index closes at or above 600.

The interest factor will be (a) 1.3 times

• 4% minus six-month Libor from Aug. 20, 2013 to 2017;

• 5.5% minus six-month Libor from Aug. 20, 2017 to 2022; and

• 6% minus six-month Libor from Aug. 20, 2022 to 2027.

The interest factor cannot be less than zero. Interest will be payable quarterly.

The payout at maturity will be par.

Beginning on Aug. 20, 2013, the CDs will be callable at par on any interest payment date.

The CDs (Cusip: 48124JHE1) are expected to price on Aug. 15 and settle on Aug. 20.

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

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