Published on 4/3/2012 in the Prospect News Structured Products Daily.
New Issue: JPMorgan prices $785,000 autocallable contingent interest notes linked to Wells Fargo
By Angela McDaniels
Tacoma, Wash., April 3 - JPMorgan Chase & Co. priced $785,000 of autocallable contingent interest notes due April 17, 2013 linked to the common stock of Wells Fargo & Co., according to a 424B2 filing with the Securities and Exchange Commission.
If Wells Fargo shares close at or above the interest barrier, 80% of the initial share price, on a quarterly review date, the notes will pay a 2.5125% coupon that quarter, which is equivalent to 10.05% per year. If Wells Fargo shares close below the interest barrier, no coupon will be paid that quarter.
If Wells Fargo shares close at or above the initial share price on any of the review dates other than the final review date, the notes will be automatically called at par plus 2.5125%.
If the notes have not been called and the final share price is greater than or equal to the trigger level, 70% of the initial share price, the payout at maturity will be par plus 2.5125%. If the final share price is less than the trigger level, investors will be fully exposed to the decline of Wells Fargo shares from the initial share price.
J.P. Morgan Securities LLC is the agent.
| Issuer: | JPMorgan Chase & Co.
|
| Issue: | Autocallable contingent interest notes
|
| Underlying stock: | Wells Fargo & Co. (NYSE: WFC)
|
| Amount: | $785,000
|
| Maturity: | April 17, 2013
|
| Coupon: | If Wells Fargo shares close at or above interest barrier on review date, 2.5125% coupon will be paid that quarter (equivalent to 10.05% per year); if Wells Fargo shares close below interest barrier, no coupon will be paid that quarter
|
| Price: | Par
|
| Payout at maturity: | If final share price is greater than or equal to trigger level, par plus 2.5125%; otherwise, full exposure to decline of Wells Fargo shares from initial share price
|
| Call: | Automatically at par plus 2.5125% if Wells Fargo shares close at or above initial share price on July 12, 2012, Oct. 12, 2012 or Jan. 14, 2013
|
| Initial share price: | $34.14
|
| Interest barrier: | $27.312, 80% of initial share price
|
| Trigger level: | $23.898, 70% of initial share price
|
| Pricing date: | March 30
|
| Settlement date: | April 4
|
| Agent: | J.P. Morgan Securities LLC
|
| Fees: | 1%
|
| Cusip: | 48125VSV3
|
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