By Angela McDaniels
Tacoma, Wash., Jan. 25 – JPMorgan Chase & Co. priced $2.33 million of callable contingent interest notes due Jan. 30, 2017 linked to the lesser performing of the iShares Russell 2000 exchange-traded fund and the iShares MSCI EAFE exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon at an annual rate of 9.75% if each ETF closes at or above its interest barrier, 70% of its initial share price, on the review date for that quarter.
The notes are callable at par plus the contingent coupon on any interest payment date other than the first and final interest payment dates.
If the notes have not been called, the payout at maturity will be par unless either ETF finishes below its initial share price and either ETF closes below its trigger value, 65% of its initial share price, during the life of the notes, in which case investors will be fully exposed to the decline of the lesser-performing ETF.
J.P. Morgan Securities LLC is the agent.
| Issuer: | JPMorgan Chase & Co.
|
| Issue: | Callable contingent interest notes
|
| Underlying ETF: | iShares Russell 2000 and iShares MSCI EAFE
|
| Amount: | $2,325,000
|
| Maturity: | Jan. 30, 2017
|
| Coupon: | Notes pay quarterly contingent coupon at annual rate of 9.75% if each underlying ETF closes at or above interest barrier on review date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless final share price of either ETF is less than initial share price and either ETF closes below trigger value during life of notes, in which case full exposure to decline of lesser-performing underlying ETF
|
| Call: | Callable at par plus contingent coupon on any interest payment date other than first and final ones
|
| Initial share prices: | $98.94 for Russell ETF and $52.92 for MSCI EAFE ETF
|
| Interest barriers: | $69.258 for Russell ETF and $37.044 for MSCI EAFE ETF; 70% of initial share prices
|
| Trigger values: | $64.311 for Russell ETF and $34.398 for MSCI EAFE ETF; 65% of initial share price
|
| Pricing date: | Jan. 21
|
| Settlement date: | Jan. 26
|
| Agent: | J.P. Morgan Securities LLC
|
| Fees: | 0.5%
|
| Cusip: | 48128GKM1
|
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