JPMorgan plans contingent income autocallables linked to Starbucks

By Susanna Moon

Chicago, Aug. 5 - JPMorgan Chase & Co. plans to price contingent income autocallable securities due Aug. 12, 2016 with step-up redemption threshold level linked to Starbucks Corp. shares, according to an FWP filing with the Securities and Exchange Commission.

If Starbucks stock closes at or above the 80% downside threshold level on a quarterly determination date, the notes will pay a contingent payment of 2.1625% to 2.6625% for that quarter. The exact contingent quarterly payment will be set at pricing.

If the stock closes at or above the initial share price on any of the first 11 quarterly determination dates, the notes will be redeemed at par of $10 plus the contingent payment. The redemption threshold level will be 105% of the initial stock price for the first four determination dates, 110% of the initial stock price for the next four dates and 115% of the initial stock price for the final three dates.

If the notes are not called, the payout at maturity will be par plus the contingent payment unless the stock finishes below the 80% downside threshold level, in which case the payout will be a number of Starbucks shares equal to $10 divided by the initial share price or, at the issuer's option, the cash equivalent.

J.P. Morgan Securities. LLC is the agent with distribution through Morgan Stanley Smith Barney LLC.

The notes will price on Aug. 9 and settle three days later.

The Cusip number is 48126H621.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.