JPMorgan plans contingent income autocallables linked to Chipotle

By Angela McDaniels

Tacoma, Wash., May 6 – JPMorgan Chase Financial Co. LLC plans to price contingent income autocallable securities due May 16, 2019 linked to the common stock of Chipotle Mexican Grill, Inc., according to an FWP filing with the Securities and Exchange Commission.

The notes are guaranteed by JPMorgan Chase & Co.

If Chipotle shares close at or above the downside threshold level, 80% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of at least 11%. The exact rate will be set at pricing.

The notes will be called at par of $10 plus the contingent coupon if Chipotle shares close at or above the initial share price on any quarterly determination date other than the final determination date.

If the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will lose 1% for every 1% that the final share price is less than the initial share price.

J.P. Morgan Securities LLC is the agent. Morgan Stanley Smith Barney LLC is handling distribution.

The notes are expected to price May 13.

The Cusip number is 46646W854.

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