JPMorgan sets conversion rate for $600 million 0.25% notes on Voya

By Susanna Moon

Chicago, May 2 – JPMorgan Chase Financial Co. LLC set the conversion rate for its $600 million of 0.25% cash-settled equity-linked notes due 2023 linked to the common stock of Voya Financial, Inc.

The conversion rate of the notes was set at 14.6221, or $1,000 divided by the threshold price of $68.38972, according to a company update on Monday.

The threshold price represents a 30% premium over the initial reference price of $52.60748, which is the arithmetic average of the volume-weighted average prices of one share of Voya common stock over the five consecutive trading days from April 25 through May 1.

Settlement was expected to occur on May 2.

As reported, JPMorgan priced $600 million of the notes on April 24 with a 0.25% coupon and a 30% initial conversion premium at par.

The notes came at the cheap end of price talk for a coupon of 0% to 0.25% and an initial conversion premium of 30% to 35%.

JPMorgan Securities LLC is the bookrunner for the Rule 144A deal.

The offering is the fourth sale of cash-settled equity-linked notes based on Voya Financial stock this year, but the previous offerings, by Deutsche Bank AG, London Branch, Bank of America Corp.’s BofA Finance LLC and an earlier sale by JPMorgan Chase, were also registered with the Securities and Exchange Commission.

There are no call or put options. There is dividend protection above 1 cent per quarter and takeover protection.

The notes are guaranteed by JPMorgan Chase & Co.

Proceeds will be used for general corporate purposes.

JPMorgan Chase Financial is a subsidiary of JPMorgan Chase & Co., a New York-based banking and financial services holding company.

Voya Financial is a New York-based investment and insurance company.

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