Chicago, June 27 – JPMorgan Chase Financial Co. LLC priced $1.5 million of callable contingent interest notes due Nov. 7, 2023 linked to the common stock of Freeport-McMoRan Inc., according to a 424B2 filing with the Securities and Exchange Commission.
For the short-term notes, contingent interest will be paid at an annual rate of 14.05%, but the term of the notes is only approximately five months. Interest will be paid if the stock closes above 60.75% of its initial level on two observation dates, Aug. 31 and Nov. 2, the final review date. The first interest payment would be 3.5125% and the second interest payment would be 2.34167%, for a total possible coupon interest rate of 5.85417% over the term of the notes.
If the stock gains or ends above its 60.75% downside threshold the payout at maturity will be par plus the coupon. Investors will lose 1% for every 1% that the stock declines if it finishes below its downside threshold level.
The securities may be called starting Aug. 31 at par and on any subsequent determination date.
The notes are guaranteed by JPMorgan Chase & Co.
J.P. Morgan Securities LLC is the agent.
| Issuer: | JPMorgan Chase Financial Co. LLC
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| Guarantor: | JPMorgan Chase & Co.
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| Issue: | Callable contingent interest notes
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| Underlying stock: | Freeport-McMoRan Inc.
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| Amount: | $1.5 million
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| Maturity: | Nov. 7, 2023
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| Coupon: | 14.05% annualized rate, payable at three-month observation date and five-month observation date if stock closes above interest barrier on related observation date
|
| Price: | Par
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| Payout at maturity: | If stock finishes at or above its downside threshold level, par; 1% loss for every 1% that stock declines if it finishes below its downside threshold level
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| Call: | On Aug. 31 at par at issuer’s option
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| Initial level: | $34.34
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| Interest barrier level: | $20.86155, 60.75% of initial level
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| Downside threshold: | $20.86155, 60.75% of initial level
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| Pricing date: | May 31
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| Settlement date: | June 5
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| Agent: | J.P. Morgan Securities LLC
|
| Fees: | 0.5%
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| Cusip: | 48133XCV6
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