JPMorgan plans reverse convertibles tied to Aruba; Citi plans autocallables linked to indexes

By Sheri Kasprzak

New York, Nov. 4 - JPMorgan Chase & Co. announced plans to offer 12% reverse convertibles linked to the stock of Aruba Networks, Inc.

The issuer plans to price the notes, which are due Nov. 13, 2014, on Nov. 7 with an expected settlement date of Nov. 13.

The payout at maturity will be par in cash unless Aruba Networks shares fall below 70% of the initial price during the life of the notes and finish below the initial price, in which case the payout will be a number of Aruba Networks shares equal to $1,000 divided by the initial price.

J.P. Morgan Securities LLC is the agent.

On Monday, Aruba's stock climbed 6 cents, or 0.3%, to close at $18.57.

Citi plans two-index notes

Elsewhere during the session, Citigroup Inc. announced plans to price 0% autocallable securities due November 2016 linked to the worst performing of the S&P 500 index and the Russell 2000 index.

The notes will be called at par plus a premium of 10.2% per year if each index closes at or above its initial level on Nov. 21, 2014 or Nov. 20, 2015.

If the notes are not called, the payout at maturity will be par unless either index finishes below its 80% trigger level, in which case investors will be exposed to the losses of the worst performing index.

Citigroup Global Markets Inc. is the agent.

The notes will price Nov. 25 and settle Nov. 28.

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