JPMorgan plans variable-rate range accrual CDs linked to Euro Stoxx 50

By Susanna Moon

Chicago, Aug. 7 – JPMorgan Chase Bank, NA plans to price callable variable-rate range accrual certificates of deposit due Aug. 18, 2029 linked to the Euro Stoxx 50 index, according to a term sheet.

Interest will be fixed at 10.25% for the first year. After that, it will accrue at a rate for each day that the index closes at or above the minimum index level, which will be 75% of the initial level, up to a cap. Interest will be payable quarterly and cannot be less than zero.

The interest factor will be 2 times the strike rate minus six-month Libor. The strike rate will be 4.5% beginning Aug. 18, 2015, stepping up to 5.5% on Aug. 18, 2019 and to 6% on Aug. 18, 2024.

The interest rate cap will be 9% initially, stepping up to 11% on Aug. 18, 2019 and to 12% on Aug. 18, 2024.

The payout at maturity will be par.

The CDs will be callable at par on any quarterly call date after one year.

J.P. Morgan Securities LLC is the agent.

The CDs will price on Aug. 13 and settle on Aug. 18.

The Cusip number is 48125TUM5.

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