JPMorgan to price contingent income autocallables linked to Teva ADS

By Devika Patel

Knoxville, Tenn., May 12 – JPMorgan Chase Financial Co. LLC plans to price contingent income autocallable securities due May 22, 2020 linked to the American Depositary Shares of Teva Pharmaceutical Industries Ltd., according to an FWP filing with the Securities and Exchange Commission.

The notes will be guaranteed by JPMorgan Chase & Co.

If Teva ADS close at or above the downside threshold level, 70% 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 10.15%, with the exact coupon to be set at pricing.

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

If the final ADS 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 ADS price is less than the initial ADS price.

J.P. Morgan Securities LLC is the agent. Morgan Stanley Wealth Management is a dealer.

The notes (Cusip: 48129F135) will price on May 19 and settle three days after pricing.

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