By Kiku Steinfeld
Chicago, Nov. 26 – JPMorgan Chase Financial Co. LLC priced $2.41 million of 0% knock-out notes due Dec. 4, 2020 linked to gold, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be guaranteed by JPMorgan Chase & Co.
A knock-out event will occur if on any day during the life of the notes the commodity closes above 130% of its initial level.
If a knock-out event has not occurred, the payout at maturity will be 96% of par plus the return of the commodity, subject to a floored payout of $960 per $1,000 of notes. This means that the price of gold needs to rise by at least 4% for investors to receive their principal back.
If a knock-out event has occurred, the payout will be $1,132.50 per $1,000 note.
J.P. Morgan Securities LLC is the agent.
| Issuer: | JPMorgan Chase Financial Co. LLC
|
| Guarantor: | JPMorgan Chase & Co.
|
| Issue: | Knock-out notes
|
| Underlying commodity: | Gold
|
| Amount: | $2,405,000
|
| Maturity: | Dec. 4, 2020
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If a knock-out event has not occurred, 96% of par plus return of the commodity, subject to minimum payout of $960 per $1,000 of notes; if a knock-out event has occurred, $1,132.50 per $1,000 note; knock-out event will occur if commodity ever closes above 130% of initial level
|
| Initial commodity level: | $1,508.80
|
| Knock-out level: | 130% of initial level
|
| Pricing date: | Nov. 1
|
| Settlement date: | Nov. 6
|
| Agent: | J.P. Morgan Securities LLC
|
| Fees: | 1%
|
| Cusip: | 48130USP1
|
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