Published on 10/25/2016 in the Prospect News Structured Products Daily.
New Issue: JPMorgan prices $8 million contingent income callable notes tied to three indexes
By Marisa Wong
Morgantown, W.Va., Oct. 25 – JPMorgan Chase Financial Co. LLC priced $8 million of contingent income callable securities due Oct. 26, 2020 linked to the worst performing of the MSCI EAFE index, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by JPMorgan Chase & Co.
Each quarter, the notes pay a contingent coupon at an annual rate of 8.4% if each index closes at or above its downside threshold level, 60% of its initial index level, on the determination date for that quarter.
The notes are callable at par on any quarterly determination date other than the first and final ones.
If each index finishes at or above its downside threshold level, the payout at maturity will be par plus the final contingent coupon. If the final level of any index is less than its downside threshold level, investors will be fully exposed to the decline of the least-performing index.
J.P. Morgan Securities LLC is the agent. Distribution is through Morgan Stanley Wealth Management.
| Issuer: | JPMorgan Chase Financial Co. LLC
|
| Guarantor: | JPMorgan Chase & Co.
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| Issue: | Contingent income callable securities
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| Underlying indexes: | MSCI EAFE, Russell 2000 and S&P 500
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| Amount: | $7,999,000
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| Maturity: | Oct. 26, 2020
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| Coupon: | 8.4% per year, payable quarterly if each index closes at or above downside threshold level on determination date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above downside threshold level, par plus final contingent coupon; if final level of any index is less than downside threshold level, full exposure to decline of lowest-performing index
|
| Call option: | At par on any quarterly determination date other than first and final ones
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| Initial index levels: | 1,672.45 for MSCI EAFE, 1,218.096 for Russell 2000 and 2,141.16 for S&P 500
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| Downside thresholds: | 1,003.47 for MSCI EAFE, 730.8576 for Russell 2000 and 1,284.696 for S&P 500; 60% of initial levels
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| Pricing date: | Oct. 21
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| Settlement date: | Oct. 26
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| Agent: | J.P. Morgan Securities LLC
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| Distribution: | Morgan Stanley Wealth Management
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| Fees: | 2%
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| Cusip: | 46646EY89
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