By Toni Weeks
San Luis Obispo, Calif., March 24 – JPMorgan Chase & Co. priced $3.52 million of contingent income autocallable securities due March 23, 2018 linked to Green Mountain Coffee Roasters, Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 12% if the shares close at or above the 75% downside threshold level on the observation date for that quarter.
The notes will be called at par plus the contingent coupon if the stock closes at or above the 90% redemption level on any determination date other than the final date.
The payout at maturity will be par plus the final coupon unless the shares finish below the 75% downside threshold level, in which case investors will receive a number of Green Mountain shares equal to $10 divided by the initial price or, at the issuer’s option, the cash equivalent.
J.P. Morgan Securities LLC is the agent with Morgan Stanley Wealth Management handling distribution.
| Issuer: | JPMorgan Chase & Co.
|
| Issue: | Contingent income autocallable securities
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| Underlying stock: | Green Mountain Coffee Roasters, Inc. (Symbol: GMCR)
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| Amount: | $3.52 million
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| Maturity: | March 23, 2018
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| Coupon: | 12% per year, payable quarterly if Green Mountain shares close at or above downside threshold level on determination date for that quarter
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| Price: | Par of $10
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| Payout at maturity: | If final share price is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, 0.08133 Green Mountain shares or, at issuer’s option, cash amount equal to value of those shares
|
| Call: | At par plus contingent coupon if Green Mountain shares close at or above initial share price on any quarterly determination date other than final determination date
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| Initial share price: | $122.95
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| Downside threshold: | $92.2125, 75% of initial share price
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| Redemption level: | 90% of initial price
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| Pricing date: | March 20
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| Settlement date: | March 25
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| Agent: | J.P. Morgan Securities LLC
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| Distribution: | Morgan Stanley Wealth Management
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| Fees: | 2.5%
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| Cusip: | 48127T749
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