JPMorgan to price contingent income callable securities on S&P 500

By Sarah Lizee

Olympia, Wash., Sept. 16 – JPMorgan Chase Financial Co. LLC plans to price contingent income callable securities due Sept. 25, 2029 linked to the S&P 500 index, according to an FWP filing with the Securities and Exchange Commission.

The notes will be guaranteed by Goldman Sachs Group, Inc.

Each quarter, the notes pay a contingent coupon at the rate of 6% per year if the index closes at or above its coupon threshold level, 75% of its initial level, on the determination date for that quarter.

JPMorgan may call the notes at par on any quarterly coupon payment date other than the first and final one.

If the index finishes at or above its coupon threshold level, the payout at maturity will be par plus the final contingent coupon. If the index finishes below the coupon threshold but at or above the downside threshold level, 65% of the initial level, the payout will be par. If the final index level is less than the downside threshold level, investors will be fully exposed to the index’s decline from its initial level.

J.P. Morgan Securities LLC is the underwriter, with Morgan Stanley Wealth Management handling distribution.

The notes are expected to price on Sept. 20.

The Cusip number is 48132FLN4.

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