JPMorgan plans fixed-to-floating callable range accrual CDs linked to S&P 500 index, CMS rates

By Toni Weeks

San Luis Obispo, Calif., Nov. 6 – JPMorgan Chase Bank, NA plans to price fixed-to-floating-rate callable range accrual certificates of deposit due Nov. 17, 2029 linked to the S&P 500 index, the 10-year Constant Maturity Swap rate and the two-year CMS rate, according to a term sheet.

Interest will be 8% for the first year. After that, the coupon will be five times the spread of the 30-year CMS rate minus the two-year CMS rate for each day that the index is at least 75% of the initial level. Interest will be payable quarterly and cannot be less than 0% or greater than 8%.

The payout at maturity will be par.

The CDs will be callable at par on the 17th of each February, May, August and November beginning Nov. 17, 2019.

J.P. Morgan Securities LLC is the agent.

The CDs are expected to price Nov. 12 and settle Nov. 17.

The Cusip number is 48125TC37.

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