JPMorgan preps sale of notes linked to stock basket; FHLB sells two large step-up note issues

By Sheri Kasprzak

New York, Sept. 27 - Heading up structured products action Thursday, JPMorgan Chase & Co. announced its plans to price 0% notes linked to a basket of 15 stocks.

The basket, which will be equally weighted, includes McDonald's Corp., Kraft Foods Inc., Altria Group, Inc., Coca-Cola Co., Proctor & Gamble Co., Novartis AG, Unilever NV, Total SA, Royal Dutch Shell plc, Johnson & Johnson, Merck & Co., Inc., ConocoPhillips, Roche Holding Ltd., International Business Machines Corp. and Vodafone Group plc.

"It's a diverse basket with plenty of big names," said a market source asked about the basket.

"It's a fairly standard structure, and one for someone who wants exposure to a number of larger companies but not as much risk with a single company."

The notes are due in 2018 and pay par plus 100% of any basket gain. If the basket falls, investors receive par.

J.P. Morgan Securities LLC is the agent.

The notes will price on Oct. 5.

FHLB brings step-up notes

Elsewhere during the session, Federal Home Loan Banks priced two rather large offerings, both initial rate callable step-up notes.

The bank sold $140 million of 2.3% initial rate 15-year notes.

The notes are due Oct. 25, 2027 and have a Bermuda call, according to the agency's web site.

First Tennessee is the manager for that offering.

BMO Capital Markets Corp. is the manager for a $25 million upsized sale of 1% initial rate 12-year notes from FHLB.

The notes are due Oct. 22, 2024 and have a Canary call, said the agency's site.

FHLB originally priced $15 million of the issue.

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