JPMorgan plans contingent interest autocallables on biotech, oil ETFs

By Angela McDaniels

Tacoma, Wash., March 6 – JPMorgan Chase Financial Co. LLC plans to price autocallable contingent interest notes due March 12, 2020 linked to the lesser performing of the SPDR S&P Biotech exchange-traded fund and the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be guaranteed by JPMorgan Chase & Co.

Each month, the notes will pay a contingent coupon if each ETF closes at or above its trigger value, 60% of its initial share price, on the review date for that month. The contingent coupon rate is expected to be at least 12.25% per year and will be set at pricing.

Beginning Sept. 7, the notes will be automatically called at par plus the contingent coupon if each ETF closes at or above its initial share price on any quarterly autocall review date.

If the notes have not been called, the payout at maturity will be par unless either ETF finishes below its trigger value, in which case investors will lose 1% for every 1% that the least-performing ETF finishes below its initial share price.

J.P. Morgan Securities LLC is the agent.

The notes will price March 7.

The Cusip number is 46646QMM4.

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