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Published on 4/23/2018 in the Prospect News Structured Products Daily.

JPMorgan to price digital contingent coupon CDs linked to 10 stocks

By Marisa Wong

Morgantown, W.Va., April 23 – JPMorgan Chase Bank, NA plans to price digital contingent coupon certificates of deposit due April 30, 2025 linked to a basket of stocks, according to a term sheet.

The equally weighted basket includes the common stocks of Altria Group, Inc., Apple Inc., AT&T Inc., Chevron Corp., Cisco Systems, Inc., Exxon Mobil Corp., Ford Motor Co., International Business Machines Corp., Merck & Co., Inc. and Verizon Communications Inc.

Interest is payable annually and will equal the sum of the weighted performances of the basket stocks, subject to a minimum interest rate that is expected to be at least 2% per year.

If a stock’s return is greater than or equal to zero, its performance will be equal to the coupon cap, which is expected to be at least 5% per year. Otherwise, its performance will be equal to the greater of its return and negative 15%.

The exact minimum interest rate and coupon cap will be set at pricing.

The payout at maturity will be par plus the final coupon.

J.P. Morgan Securities LLC is the agent. Incapital LLC is distributor.

The CDs will price April 25.

The Cusip number is 48126Y4Q3.


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