By Angela McDaniels
Tacoma, Wash., March 26 - JPMorgan Chase & Co. priced $1.7 million of callable variable-rate range accrual notes due March 27, 2028 linked to Libor and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The interest rate is 8% for the first year. For the remaining life of the notes, the interest rate equals the interest factor multiplied by the proportion of days on which the index closes at or above 685. Interest is payable quarterly
The interest factor is (a) 1.4 times (b) the strike rate minus Libor, subject to a minimum of zero and a maximum interest rate that increases over time.
The strike rate is 5.5% per year in years two through five, 6% per year in years six through 10 and 6.5% per year in years 11 through 15. The maximum interest rate is 7.7% per year in years two through five, 8.4% per year in years six through 10 and 9.1% per year in years 11 through 15.
The payout at maturity will be par.
Beginning March 27, 2016, the notes will be redeemable at par on any interest payment date.
J.P. Morgan Securities LLC is the agent.
| Issuer: | JPMorgan Chase & Co.
|
| Issue: | Callable variable-rate range accrual notes
|
| Underlyings: | Libor, Russell 2000
|
| Amount: | $1,695,000
|
| Maturity: | March 27, 2028
|
| Coupon: | 8% for first year; after that, interest factor multiplied by proportion of days on which index closes at or above 685; payable quarterly
|
| Interest factor: | (a) 1.4 times (b) strike rate minus Libor, subject to minimum of zero and maximum interest rate
|
| Strike rate: | 5.5% in years two through five, 6% in years six through 10 and 6.5% in years 11 through 15
|
| Maximum interest rate: | 7.7% in years two through five, 8.4% in years six through 10 and 9.1% in years 11 through 15
|
| Price: | Variable prices
|
| Payout at maturity: | Par
|
| Call option: | At par on any interest payment date from March 27, 2016 onward
|
| Pricing date: | March 22
|
| Settlement date: | March 27
|
| Agent: | J.P. Morgan Securities LLC
|
| Fees: | 4.93%, including 3% for selling concessions
|
| Cusip: | 48126DNE5
|
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