By Angela McDaniels
Tacoma, Wash., Jan. 11 - JPMorgan Chase & Co. priced $2 million of autocallable contingent interest notes due Jan. 29, 2014 linked to the common stock of K12, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
If K12 shares close at or above the barrier level, 60% of the stock strike price, on a semiannual review date, the notes will pay a 6.5% coupon that interest period, which is equivalent to 13% per year. If K12 shares close below the barrier level, no coupon will be paid for that interest period.
If K12 shares close at or above the stock strike price on July 25, 2013, the notes will be automatically called at par plus the 6.5% contingent coupon.
If the notes have not been called and the final share price is greater than or equal to the barrier level, the payout at maturity will be par plus the contingent coupon. If the final share price is less than the barrier level, investors will be exposed to the decline from the stock strike price.
The stock strike price, $20.35, was set by the calculation agent and is lower than the closing share price of K12 stock on the pricing date, which was $20.64.
J.P. Morgan Securities LLC is the agent.
| Issuer: | JPMorgan Chase & Co.
|
| Issue: | Autocallable contingent interest notes
|
| Underlying stock: | K12 Inc. (NYSE: LRN)
|
| Amount: | $2 million
|
| Maturity: | Jan. 29, 2014
|
| Coupon: | 13% per year, payable semiannually if closing price of K12 stock is equal to or greater than barrier price; otherwise, no coupon for that interest period
|
| Price: | Par
|
| Payout at maturity: | Par plus contingent coupon unless K12 shares finish below barrier price, in which case investors share fully in losses
|
| Call: | At par plus contingent coupon if closing share price on July 25, 2013 is greater than or equal to stock strike price
|
| Stock strike price: | $20.35
|
| Barrier price: | $12.21, 60% of stock strike price
|
| Pricing date: | Jan. 9
|
| Settlement date: | Jan. 14
|
| Agent: | J.P. Morgan Securities LLC
|
| Fees: | 1%
|
| Cusip: | 48126DSZ3 |
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
