JPMorgan plans digital contingent coupon CDs due 2021 on 10 stocks

By Marisa Wong

Morgantown, W.Va., Aug. 13 – JPMorgan Chase Bank, NA plans to price digital contingent coupon certificates of deposit due Aug. 31, 2021 linked to a basket of stocks, according to a term sheet.

The equally weighted basket includes AT&T Inc., CenturyLink, Inc., CME Group Inc., Exelon Corp., General Motors Co., Kinder Morgan, Inc., Philip Morris International Inc., Potash Corp. of Saskatchewan Inc., Reynolds American Inc. and Williams Cos. Inc.

Interest is payable annually and will equal the sum of the weighted performances of the basket stocks, subject to a minimum interest rate that is expected to be at least 0.75% per year.

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 between 6% and 6.5%.

The exact minimum interest rate and coupon cap will be set at pricing.

The payout at maturity will be par.

J.P. Morgan Securities LLC is the agent. Incapital LLC is distributor.

The CDs are expected to price Aug. 26 and settle Aug. 31.

The Cusip number is 48125YNC4.

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