JPMorgan talks $500 million cash-settled bonds exchangeable for Alibaba shares at 109.5

By Abigail W. Adams

Portland, Me., Jan. 7 – J.P. Morgan Chase Bank, NA plans to price $500 million three-year cash-settled bonds exchangeable for Alibaba Group Holding Ltd. shares after the market close on Wednesday.

Price talk is for a fixed coupon of 0.125%, a fixed exchange premium of 20% and an offer price of 109.5, according to a market source.

J.P. Morgan Securities LLC is the bookrunner for the Rule 144A offering, which carries a greenshoe of $50 million.

The offering may be upsized by $250 million.

The bonds are non-callable and have no put features. There is dividend and takeover protection.

JPMorgan is a New York-based multinational investment bank.

Alibaba is a Hangzhou, China-based multinational e-commerce holding company.

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