JPMorgan plans autocallable reverse exchangeables on Chesapeake Energy

By Toni Weeks

San Luis Obispo, Calif., May 4 – JPMorgan Chase & Co. plans to price 12% to 14% autocallable reverse exchangeable notes due May 19, 2016 linked to the common stock of Chesapeake Energy Corp., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly. The exact coupon will be determined at pricing.

Beginning Nov. 16, 2015, the notes will be called at par if Chesapeake Energy stock closes at or above the initial value on any monthly review date other than final review date.

If the notes are not called, the payout at maturity will be par unless the final share price is less than the initial price and the stock closes below the trigger price, 57.5% of the initial value, on any day during the life of the notes, in which case the payout will be a number of Chesapeake Energy shares equal to $1,000 divided by the initial price or, at the issuer’s option, the cash value of those shares.

The notes (Cusip: 46625HLA6) are expected to price May 15 and settle May 20.

J.P. Morgan Securities LLC is the agent.

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