By Toni Weeks
San Diego, Nov. 20 - JPMorgan Chase & Co. priced $1.77 million of autocallable contingent interest notes due Dec. 4, 2013 linked to Wells Fargo & Co. shares, according to a 424B2 filing with the Securities and Exchange Commission.
If Wells Fargo shares close at or above the barrier level, 80% of the initial share price, on a quarterly review date, the notes will pay a 3.625% coupon that interest period, which is equivalent to 14.5% per year. If Wells Fargo shares close below the barrier level, no coupon will be paid for that interest period.
If Wells Fargo shares close at or above the initial share price on any of the first three quarterly review dates, the notes will be automatically called at par plus 3.625%.
If the notes have not been called and the final share price is greater than or equal to the barrier level, the payout at maturity will be par plus 3.625%. If the final share price is less than the barrier level, investors will be exposed to the decline of Wells Fargo shares from the initial share price.
J.P. Morgan Securities LLC is the underwriter.
| Issuer: | JPMorgan Chase & Co.
|
| Issue: | Autocallable contingent interest notes
|
| Underlying stock: | Wells Fargo & Co. (Symbol: WFC)
|
| Amount: | $1,772,000
|
| Maturity: | Dec. 4, 2013
|
| Coupon: | 14.5% per year, payable quarterly if the closing price of Wells Fargo shares is equal to or greater than barrier price; otherwise, no coupon for that interest period
|
| Price: | Par
|
| Payout at maturity: | Par in cash unless Wells Fargo shares finish below barrier price, in which case investors share in losses
|
| Call: | At par plus contingent coupon if closing share price on Feb. 28, May 30, 2013 or Aug. 29, 2013 is greater than or equal to initial share price
|
| Initial share price: | $31.94
|
| Barrier price: | $25.552, 80% of initial share price
|
| Pricing date: | Nov. 16
|
| Settlement date: | Nov. 21
|
| Underwriter: | J.P. Morgan Securities LLC
|
| Fees: | 1%
|
| Cusip: | 48126DHY8
|
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