By Toni Weeks
San Luis Obispo, Calif., March 25 – JPMorgan Chase & Co. priced $8.83 million of contingent income autocallable securities due March 24, 2016 linked to Halliburton Co. 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 11.75% if the shares close at or above the 80% 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 initial 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 80% downside threshold level, in which case investors will receive a number of Halliburton 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
|
| Underlying stock: | Halliburton Co. (Symbol: HAL)
|
| Amount: | $8,834,690
|
| Maturity: | March 24, 2016
|
| Coupon: | 11.75% per year, payable quarterly if Halliburton shares close at or above downside threshold level on determination date for that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | If final share price is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, 0.23354 Halliburton shares or, at issuer’s option, cash amount equal to value of those shares
|
| Call: | At par plus contingent coupon if Halliburton shares close at or above initial share price on any quarterly determination date other than final determination date
|
| Initial share price: | $42.82
|
| Downside threshold: | $34.256, 80% of initial share price
|
| Pricing date: | March 20
|
| Settlement date: | March 25
|
| Agent: | J.P. Morgan Securities LLC
|
| Distribution: | Morgan Stanley Wealth Management
|
| Fees: | 1.75%
|
| Cusip: | 48127T863
|
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