JPMorgan plans contingent interest autocallables tied to oil & gas ETF

By Angela McDaniels

Tacoma, Wash., July 9 – JPMorgan Chase Financial Co. LLC plans to price autocallable contingent interest notes due July 30, 2021 linked to the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

Each month, the notes will pay a contingent coupon if the ETF closes at or above the buffer threshold, 85% of the initial share price, on the review date for that month. The contingent coupon rate is expected to be 8% to 10% per year and will be set at pricing.

The notes will be automatically called at par plus the contingent coupon if the ETF closes at or above its initial share price on any monthly review date other than the first, second and final review dates.

If the notes have not been called, the payout at maturity will be par unless the ETF finishes below its buffer threshold, in which case investors will lose 1% for every 1% that the ETF declines beyond 15%.

The notes will be guaranteed by JPMorgan Chase & Co.

J.P. Morgan Securities LLC is the agent.

The notes will price July 26.

The Cusip number is 48132C3C5.

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