JPMorgan announces replacement rate for securities tied to U.S. dollar Libor ICE swap rates

By Wendy Van Sickle

Columbus, Ohio, April 20 – JPMorgan Chase & Co. announced its replacement rate for certain outstanding floating-rate and fixed-to-floating rate debt securities issued by itself, JPMorgan Chase Financial Co. LLC and JPMorgan Chase Bank, NA that are linked to U.S. dollar Libor ICE swap rates of one or more tenors in a news release Thursday.

In the case of any securities that permit the calculation agent to select a successor rate following the discontinuation of U.S. dollar Libor ICE swap rates, the calculation agent has determined that, for the purposes of calculating any payment on such securities that is to be determined using one or more U.S. dollar Libor ICE swap rates after June 30, any such swap rates will be replaced by the U.S. dollar SOFR ICE swap rate for the same tenor, subject to the adjustments, including the 26.161 basis point per annum tenor spread adjustment, in accordance with the Alternative Reference Rates Committee’s suggested fallback formula.

The same replacement rate will be used in the case of any securities that permit the calculation agent to make a determination of the relevant rate in good faith and in a commercially reasonable manner if any applicable dealer poll does not yield a rate following the discontinuation of any Libor swap rates.

The financial services firm is based in New York.

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