By Jennifer Chiou
New York, July 30 - JPMorgan Chase & Co. priced $1,032,000 of autocallable contingent interest notes due Aug. 13, 2014 linked to the ordinary shares of Michael Kors Holdings Ltd., according to a 424B2 filing with the Securities and Exchange Commission.
If Michael Kors shares close at or above the barrier level on a quarterly review date, the notes will pay a 3.25% coupon that interest period, which is equivalent to 13% per year. If Michael Kors shares close below the barrier level, no coupon will be paid that interest period.
The interest barrier/trigger level is 65% of the initial level.
The notes will be called automatically at par plus the 3.25% contingent coupon if Michael Kors shares close at or above the initial price on any quarterly review date: Nov. 7, 2013, Feb. 6, 2014 or May 8, 2014.
If the notes have not been called and the final share price is greater than or equal to the barrier level, the payout at maturity will be par plus the 3.25% contingent coupon. If the final share price is less than the barrier level, investors will be exposed to the decline from the initial price.
J.P. Morgan Securities LLC is the agent.
| Issuer: | JPMorgan Chase & Co.
|
| Issue: | Autocallable contingent interest notes
|
| Underlying stock: | Michael Kors Holdings Ltd. (Symbol: KORS)
|
| Amount: | $1,032,000
|
| Maturity: | Aug. 13, 2014
|
| Coupon: | 3.25% (equivalent to 13% per year) payable for each quarter that Michael Kors stock closes at or above barrier price on review date for that interest period
|
| Price: | Par
|
| Payout at maturity: | Par plus contingent coupon unless Michael Kors shares finish below barrier price, in which case investors share fully in losses
|
| Call: | Automatically at par plus contingent coupon if Michael Kors shares close at or above initial price on Nov. 7, 2013, Feb. 6, 2014 or May 8, 2014
|
| Initial price: | $64.83
|
| Barrier/trigger price: | $42.1395, 65% of initial price
|
| Pricing date: | July 26
|
| Settlement date: | July 31
|
| Agent: | J.P. Morgan Securities LLC
|
| Fees: | 1%
|
| Cusip: | 48126NKZ9
|
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