By Marisa Wong
Morgantown, W.Va., Aug. 21 – JPMorgan Chase Financial Co. LLC priced $733,000 of autocallable contingent interest notes due Aug. 20, 2020 linked to the ordinary shares of Mallinckrodt plc, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by JPMorgan Chase & Co.
If Mallinckrodt stock closes at or above the trigger price – 60% of the initial share price – on a quarterly review date, the issuer will pay a contingent coupon for that quarter at the rate of 17.75% per year. Otherwise, no coupon will be paid that quarter.
If the shares close at or above the initial price on any quarterly review date other than the final date, the notes will be called at par plus the contingent coupon.
The payout at maturity will be par plus the contingent coupon unless the stock finishes below the trigger price, in which case investors will be exposed to the share price decline from the initial price.
J.P. Morgan Securities LLC is the underwriter.
| Issuer: | JPMorgan Chase Financial Co. LLC
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| Guarantor: | JPMorgan Chase & Co.
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| Issue: | Autocallable contingent interest notes
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| Underlying stock: | Mallinckrodt plc (Symbol: MNK)
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| Amount: | $733,000
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| Maturity: | Aug. 20, 2020
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| Coupon: | 17.75% per year, payable each quarter that stock closes at or above trigger price on review date for that quarter
|
| Price: | Par of $1,000
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| Payout at maturity: | Par plus contingent coupon unless the stock finishes below the trigger price, in which case par plus stock return with full exposure to losses
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| Call: | Automatically at par plus contingent coupon if shares close at or above initial price on any quarterly review date other than final date
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| Initial share price: | $34.14
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| Trigger price: | $20.484, 60% of initial price
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| Pricing date: | Aug. 16
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| Settlement date: | Aug. 21
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| Underwriter: | J.P. Morgan Securities LLC
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| Fees: | 2%
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| Cusip: | 48130UDA0
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