JPMorgan plans contingent income autocallables linked to Michael Kors

By Toni Weeks

San Luis Obispo, Calif., July 18 – JPMorgan Chase & Co. plans to price contingent income autocallable securities due July 28, 2017 linked to Michael Kors Holdings Ltd. shares, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at a rate of at least 10.5% per year if Michael Kors stock closes at or above the 70% downside threshold level on the determination date for that quarter. The exact coupon will be set at pricing.

If the shares close at or above the initial price on any quarterly determination date other than the final date, the notes will be called at par plus the contingent coupon.

If the notes are not called and Michael Kors stock finishes at or above the 70% trigger level, the payout at maturity will be par plus the contingent payment.

Otherwise, investors will receive a number of shares of Michael Kors stock equal to $10 divided by the initial share price or, at the issuer’s option, the cash value of those shares.

The notes (Cusip: 481246676) are expected to price July 25 and settle three business days later.

J.P. Morgan Securities LLC is the agent with Morgan Stanley Smith Barney LLC as dealer.

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