By Marisa Wong
Morgantown, W.Va., June 14 – JPMorgan Chase Financial Co. LLC priced $100 million of exchange-traded notes due June 15, 2037 linked to the Cushing 30 MLP index, according to a 424B2 filing with the Securities and Exchange Commission.
The ETNs are guaranteed by JPMorgan Chase & Co.
The index tracks the performance of publicly traded equity securities of 30 U.S.-based companies that are engaged in, or that hold an entity engaged in, the midstream activities of transportation, storage, processing or production of energy commodities. The securities are selected according to a proprietary valuation model developed by Cushing Asset Management, LP, the index sponsor. The index is maintained and published by S&P Dow Jones Indices LLC.
The ETNs may pay a variable quarterly coupon based on cash distributions on the components of the underlying index, subject to the daily deduction of an investor fee of 0.95% per year.
The payout at maturity will be a cash amount equal to the closing intrinsic note value as of the final valuation date, subject to a floor of zero.
The closing intrinsic note value on any day equals the principal amount, multiplied by the index ratio on that date, plus the coupon amount as of that date, minus any investor fee shortfall.
The index ratio is the VWAP level on the current determination date divided by the initial VWAP level. The VWAP level reflects the volume-weighted average prices of the components of the underlying index.
The ETNs offer a weekly investor put option, subject to a minimum of 50,000 notes and a repurchase fee of 0.125%.
The ETNs are also callable, in whole or in part, on any business day on or after Dec. 15, 2017.
J.P. Morgan Securities LLC is the agent.
| Issuer: | JPMorgan Chase Financial Co. LLC
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| Guarantor: | JPMorgan Chase & Co.
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| Issue: | ETNs
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| Underlying index: | Cushing 30 MLP index
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| Amount: | $100 million
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| Maturity: | June 15, 2037
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| Coupon: | Variable quarterly coupon based on cash distributions on the components of the underlying index, subject to the daily deduction of an investor fee of 0.95% per year
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| Par amount: | $20.00
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| Price: | Variable
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| Payout at maturity: | Cash amount equal to the closing intrinsic note value as of the final valuation date, subject to a floor of zero; closing intrinsic note value on any day equals the principal amount, multiplied by the index ratio on that date, plus the coupon amount as of that date, minus any investor fee shortfall; index ratio is the VWAP level on the current determination date divided by the initial VWAP level
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| Call option: | At any time on or after Dec. 15, 2017 in whole or in part
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| Put option: | Minimum 50,000 notes, subject to fee of 0.125%
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| Initial VWAP level: | 301.3668
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| Inception date: | June 12
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| Initial settlement date: | June 15
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| Agent: | J.P. Morgan Securities LLC
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| Fees: | None
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| Listing: | NYSE Arca: PPLN
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| Cusip: | 48129G703
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