JPMorgan plans airbag phoenix autocallables linked to Apollo

By Marisa Wong

Madison, Wis., Jan. 28 - JPMorgan Chase & Co. plans to price airbag phoenix autocallable optimization securities due July 31, 2015 linked to Apollo Global Management, LLC shares, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent monthly coupon at an annual rate of 11% to 13% if Apollo shares close at or above the coupon barrier, 75% of the initial share price, on the observation date for that month. The exact contingent monthly coupon will be set at pricing.

The notes will be called at par plus the coupon if the stock closes at or above the initial share price on any quarterly observation date.

If the notes are not called, the payout at maturity will be par unless the final share price is less than the conversion price, in which case the payout will be a number of Apollo shares equal to $1,000 divided by the conversion price. The conversion price is 80% of the initial share price.

UBS Financial Services Inc. and J.P. Morgan Securities LLC are the agents.

The notes will price on Jan. 29 and settle on Jan. 31.

The Cusip number is 48127A138.

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