By Toni Weeks
San Luis Obispo, Calif., Aug. 28 – JPMorgan Chase & Co. priced $1 million of autocallable contingent interest notes due Aug. 31, 2016 linked to the least performing of the common stocks of Cisco Systems, Inc., Coca-Cola Co. and Verizon Communications Inc., according to a 424B2 filing with the Securities and Exchange Commission.
If each stock closes at or above the interest barrier level, 75% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment of $25.00 per $1,000 note for that quarter. The payment is equivalent to 10% per year.
If the closing share price of each stock is greater than or equal to its initial share price on any quarterly review date other than the final date, the notes will be automatically called at par plus the contingent payment.
If the notes are not called and the final share price of each stock is greater than or equal to the 75% trigger level, the payout at maturity will be par plus the contingent interest payment. If the final share price of any stock is less than the trigger price, investors will receive a number of shares of the least-performing stock equal to $1,000 divided by that stock’s initial share price or, at the issuer’s option, the cash value of those shares.
J.P. Morgan Securities LLC is the agent.
| Issuer: | JPMorgan Chase & Co.
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| Issue: | Autocallable contingent interest notes
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| Underlying stocks: | Cisco Systems, Inc. (Symbol: CSCO), Coca-Cola Co. (Symbol: KO) and Verizon Communications Inc. (Symbol: VZ)
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| Amount: | $1 million
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| Maturity: | Aug. 31, 2016
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| Coupon: | 2.5% (equivalent to 10% per year) payable quarterly if each stock closes at or above interest barrier on review date for that quarter
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| Price: | Par
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| Payout at maturity: | Par plus contingent coupon unless any stock finishes below trigger price, in which case a number of shares of the least-performing stock equal to $1,000 divided by initial price of that stock (40.30633 Cisco shares, 24.03846 Coca-Cola shares or 20.30457 Verizon shares)
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| Call: | Automatically at par plus contingent coupon if closing price of each stock is greater than or equal to its initial share price on any quarterly review date other than final date
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| Initial share prices: | $24.81 for Cisco, $41.60 for Coca-Cola, $49.25 for Verizon
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| Interest barriers/trigger: | $18.6075 for Cisco, $31.20 for Coca-Cola, $36.9375 for Verizon, 75% of initial prices
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| Pricing date: | Aug. 26
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| Settlement date: | Aug. 29
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| Agent: | J.P. Morgan Securities LLC
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| Fees: | 2.15%
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| Cusip: | 48127DXQ6
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