By Toni Weeks
San Luis Obispo, Calif., May 13 - JPMorgan Chase & Co. priced $3 million of autocallable contingent interest notes due May 29, 2014 linked to the common stock of Valeant Pharmaceuticals International, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
If Valeant shares close at or above the barrier level, 60% of the stock strike price, on a quarterly review date, the notes will pay a 2.75% coupon that interest period, which is equivalent to 11% per year. If Valeant shares close below the barrier level, no coupon will be paid that interest period.
The notes will be automatically called at par plus the contingent coupon if Valeant shares close at or above the stock strike price on Aug. 22, Nov. 21, 2013 or Feb. 20, 2014.
If the notes have not been called and the final share price is greater than or equal to the trigger level, the payout at maturity will be par plus the contingent coupon. If the final share price is less than the trigger level, investors will be exposed to the decline from the stock strike price.
The stock strike price was determined on the May 9 pricing date by the calculation agent and is not the closing price of the stock on that day.
J.P. Morgan Securities LLC is the agent.
| Issuer: | JPMorgan Chase & Co.
|
| Issue: | Autocallable contingent interest notes
|
| Underlying stock: | Valeant Pharmaceuticals International, Inc. (NYSE: VRX)
|
| Amount: | $3 million
|
| Maturity: | May 29, 2014
|
| Coupon: | 2.75% (equivalent to 11% per year), payable quarterly if Valeant stock closes at or above barrier price on review date for that interest period; otherwise, no coupon will be paid for that interest period
|
| Price: | Par
|
| Payout at maturity: | Par plus contingent coupon unless Valeant shares finish below trigger price, in which case investors share fully in losses
|
| Call: | Automatically at par plus contingent coupon if Valeant shares close at or above stock strike price on Aug. 22, Nov. 21, 2013 or Feb. 20, 2014
|
| Stock strike price: | $72.70
|
| Barrier price/trigger level: | $43.62, 60% of stock strike price
|
| Pricing date: | May 9
|
| Settlement date: | May 14
|
| Agent: | J.P. Morgan Securities LLC
|
| Fees: | 1%
|
| Cusip: | 48126D5A3
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