JPMorgan plans trigger phoenix autocallables linked to Yahoo!

By Angela McDaniels

Tacoma, Wash., May 20 – JPMorgan Chase & Co. plans to price trigger phoenix autocallable optimization securities due May 29, 2020 linked to the common stock of Yahoo! Inc., according to an FWP filing with the Securities and Exchange Commission.

If Yahoo! stock closes at or above the trigger price, 72% to 78% of the initial share price, on a monthly observation date, the issuer will pay a contingent coupon for that month at the rate of 7% per year. Otherwise, no coupon will be paid that month. The exact trigger price will be set at pricing.

Beginning May 26, 2016, the notes will be called at par of $10 plus the contingent coupon if the shares close at or above the initial price on a monthly observation date.

If the notes are not called and Yahoo! shares finish at or above the trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to the share price decline from the initial price.

UBS Financial Services Inc. and J.P. Morgan Securities LLC are the agents.

The notes will price May 27 and settle May 29.

The Cusip number is 48127X666.

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