JPMorgan plans digital contingent coupon CDs tied to 10 stocks

By Toni Weeks

San Luis Obispo, Calif., Aug. 6 – JPMorgan Chase Bank, NA plans to price digital contingent coupon certificates of deposit due Aug. 31, 2020 linked to a basket of common stocks, according to a term sheet.

The equally weighted basket includes the common stocks of Bristol-Myers Squibb Co., Duke Energy Corp. Hewlett-Packard Co., Kimberly-Clark Corp., McDonald’s Corp., Mead Johnson Nutrition Co., Raytheon Co., Verizon Communications Inc., Walgreen Co. and Williams Cos., Inc.

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

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 15%. 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.

The CDs are expected to price Aug. 26 and settle Aug. 29.

The Cusip number is 48125TVF9.

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