By Angela McDaniels
Tacoma, Wash., Feb. 28 – JPMorgan Chase Financial Co. LLC priced $1 million of yield notes due May 31, 2019 linked to the common stock of Exelixis, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by JPMorgan Chase & Co.
The three-month notes will pay 2.25% interest over the term of the notes at the rate of 0.75% per month, which is equivalent to 9% per year.
If the final share price is greater than or equal to the strike value, the payout at maturity will be par plus 1%.
If the final share price is less than the strike value and a trigger event has not occurred, the payout will be par. A trigger event occurs if the stock closes below the trigger value, 62.90893% of the strike value, on any day during the life of the notes.
If the final share price is less than the strike value and a trigger event has occurred, investors will lose 1% for every 1% that the share price declines from the strike value.
The strike value, $22.62, was determined by the calculation agent based on certain intraday trades in Exelixis stock that occurred on the pricing date. It is higher than the stock’s $22.49 closing share price on the pricing date.
J.P. Morgan Securities LLC is the agent.
| Issuer: | JPMorgan Chase Financial Co. LLC
|
| Guarantor: | JPMorgan Chase & Co.
|
| Issue: | Yield notes
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| Underling stock: | Exelixis, Inc. (Symbol: EXEL)
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| Amount: | $1 million
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| Maturity: | May 31, 2019
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| Coupon: | 9% per year, payable monthly
|
| Price: | Par
|
| Payout at maturity: | If final share price is greater than or equal to strike value, par plus 1%; if final share price is less than strike value and trigger event has not occurred, par; if final share price is less than strike value and trigger event has occurred, 1% loss for every 1% that share price declines from strike value
|
| Trigger event: | Stock closes below trigger value on any day during life of notes
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| Strike value: | $22.62
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| Trigger value: | $14.23, 62.90893% of strike value
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| Pricing date: | Feb. 26
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| Settlement date: | March 1
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| Agent: | J.P. Morgan Securities LLC
|
| Fees: | 1.25%
|
| Cusip: | 48130W5C1
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