JPMorgan plans variable-rate range accrual CDs tied to Libor, S&P 500

By Susanna Moon

Chicago, March 7 - JPMorgan Chase Bank, NA plans to price callable variable-rate range accrual certificates of deposit due March 22, 2028 linked to six-month Libor and the S&P 500 index, according to a term sheet.

Interest rate will be 8% for the first year. After that, it will accrue at 1.2 times the strike rate minus six-month Libor for each day that the index closes at or above 80% of the initial level, up to a maximum rate.

The strike rate and cap, respectively, will be 5% and 6.25% from March 22, 2014 to but excluding March 22, 2018, 5.5% and 6.875% from March 22, 2018 to but excluding March 22, 2023 and 6% and 7.5% from March 22, 2023 to but excluding March 22, 2028.

Interest will be payable quarterly and cannot be less than zero.

The payout at maturity will be par.

The CDs will be callable at par on any interest payment date beginning on March 22, 2014.

J.P. Morgan Securities LLC is the agent.

The CDs will price on March 19 and settle on March 22.

The Cusip number is 48124JWN4.

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