JPMorgan plans variable-rate range accrual CDs linked to Russell 2000

By Susanna Moon

Chicago, July 9 – JPMorgan Chase Bank, NA plans to price callable variable-rate range accrual certificates of deposit due July 21, 2029 linked to six-month Libor and the Russell 2000 index, according to a term sheet.

Interest will be fixed at 9% for the first year. After that, it will accrue at a rate for each day that the index closes at or above the minimum index level, which will be 75% of the initial level, up to a cap. Interest will be payable quarterly and cannot be less than zero.

The interest factor will be 2 times the strike rate minus six-month Libor. The strike rate will be 4.5% beginning July 21, 2015, stepping up to 5.5% on July 21, 2019 and to 6% on July 21, 2024.

The interest rate cap will be 9% initially, stepping up to 11% on July 21, 2019 and to 12% on July 21, 2024.

The payout at maturity will be par.

The CDs will be callable at par on any quarterly call date after one year.

J.P. Morgan Securities LLC is the agent.

The notes will price on July 16 and settle on July 21.

The Cusip number is 48125TTH8.

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