JPMorgan to sell callable contingent interest notes tied to two funds

By Devika Patel

Knoxville, Tenn., Feb. 12 – JPMorgan Chase Financial Co. LLC plans to price callable contingent interest notes due Feb. 19, 2021 linked to the least 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.

The notes pay a semiannual contingent coupon at an annual rate of at least 10% if each fund closes at or above its interest barrier, 60% of its initial level, on the review date for that period. The exact coupon will be set at pricing.

The notes are callable in whole but not in part at par plus the contingent coupon, if any, on any interest payment date other than the final one beginning on Aug. 20, 2018.

If the notes have not been called, the payout at maturity will be par plus the contingent coupon unless any fund finishes below its trigger value, 60% of its initial level, in which case investors will lose 1% for each 1% decline of the least-performing fund from its initial level.

J.P. Morgan Securities LLC is the agent.

The notes (Cusip: 46647MPZ0) will price on Feb. 16 and settle on Feb. 26.

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