JPMorgan plans five-year contingent coupon notes linked to 15 stocks

By Jennifer Chiou

New York, Sept. 17 – JPMorgan Chase & Co. plans to price contingent coupon notes due Sept. 24, 2019 linked to a basket of 15 equally weighted stocks, according to an FWP with the Securities and Exchange Commission.

The underlying companies are Boeing Co., Home Depot Inc., Yum! Brands Inc., Apple Inc., Merck & Co., Inc., General Motors Co., General Electric Co., Bank of America Corp., Kraft Foods Group Inc., Kimberly-Clark Corp., McDonald's Corp., PepsiCo, Inc., Procter & Gamble Co., Johnson & Johnson and Coca-Cola Co.

Interest is payable annually and will equal the sum of the weighted performances of the basket stocks, subject to a minimum coupon of zero and cap of 7.3%.

If a stock’s return is greater than or equal to zero, its performance will be equal to the coupon cap. Otherwise, its performance will be equal to the greater of its return and negative 10%. The coupon cap is expected to be at least 7.3% and will be set at pricing.

The payout at maturity will be par.

The notes (Cusip: 48127DC22) are expected to price on Sept. 19 and settle on Sept. 24.

J.P. Morgan Securities LLC is the underwriter.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.