JPMorgan to price digital contingent coupon CDs linked to 10 stocks

By Toni Weeks

San Luis Obispo, Calif., April 4 - JPMorgan Chase Bank, NA plans to price digital contingent coupon certificates of deposit due April 30, 2021 linked to a basket of common stocks, according to a term sheet.

The equally weighted basket includes the common stocks of Cisco Systems, Inc., GameStop Corp., International Paper Co., Lorillard, Inc., Potash Corp. of Saskatchewan Inc.; Rio Tinto plc, Seagate Technology plc, Staples, Inc., Symantec Corp. and Williams Cos., Inc.

Interest is payable annually and will equal the sum of the weighted performances of the basket stocks, subject to a minimum coupon of 0%.

If a stock's return is greater than or equal to zero, its performance will be equal to the coupon cap. Otherwise, its performance will be equal to the greater of its return and negative 10%. The coupon cap is expected to be at least 8.5% and will be set at pricing.

The payout at maturity will be par.

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

The CDs are expected to price April 25 and settle April 30.

The Cusip number is 48125TLQ6.

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