JPMorgan plans callable variable-rate range accrual notes on Russell

By Toni Weeks

San Luis Obispo, Calif., March 11 - JPMorgan Chase Bank, NA plans to price callable variable-rate range accrual notes due March 27, 2028 linked to the Russell 2000 index, according to an FWP filing with the Securities and Exchange Commission.

The interest rate will be 8% for the first year. Beginning March 27, 2014, the coupon will be equal to the interest factor multiplied by the proportion of days on which the index closes at or above 685, subject to a minimum interest rate of zero and a variable maximum interest rate.

The interest factor will be (a) 1.4 times

• 5.5% minus Libor from March 27, 2014 to but excluding March 27, 2018;

• 6% minus Libor from March 27, 2018 to but excluding March 13, 2023; and

• 6.5% minus Libor from March 13, 2023 to but excluding March 27, 2028.

The maximum interest rate will be 7.7% in years two through five, 8.4% in years six through 10 and 9.1% after that. Interest will be payable quarterly.

The payout at maturity will be par.

Beginning on March 27, 2016, the notes will be callable at par on any interest payment date.

The notes (Cusip: 48126DNE5) are expected to price March 22 and settle March 27.

J.P. Morgan Securities LLC is the agent.

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